How to qualify for R&D tax credits

How to qualify for R&D tax credits

RDTax Credit web
R&D tax credits is one of many ways that we help our clients to reduce their tax bills. If your business works on a research & development project, we urge you to take action and claim R&D tax credits. Read on to find out if this could affect your business, and how you can go about claiming it.

What are R&D tax credits?

R&D tax credits are an incentive from the UK government to encourage businesses to focus on innovation and research. Businesses that spend money on research and development could receive some of that money back, either in the form of a corporation tax reduction or as a cash payment. The businesses can then spend this money on further growth and research.

Who qualifies for R&D

To qualify for R&D relief, your business must complete work that aims to make an advance in science and technology. You need to explain how your project looked for an advance in science and technology, how you had to overcome uncertainty, how you tried or managed to overcome this uncertainty, and how this problem could not have been easily worked out by a professional in the field. You have to aim to make an advance in your field as a whole, not just for your company, and you have to prove that others have not been able to find a solution to the problem in the past.

How to claim R&D tax relief

You can submit a claim yourself by filling in HMRCs forms. Some of the questions can be tricky to answer, and you want to make sure that you get it right. We always recommend seeking expert help from your accountant, as this will drastically improve your chances of receiving the grant.

You may also enjoy reading...

Growth Shares or share options

Want to keep key people? Growth Shares might be the answer

Growth shares offer a flexible and tax-efficient way to keep your top talent motivated and invested in your company's success. So, if traditional share options ...
Tax Season

Tax Season: Ditch the deadline dash

An inevitable climb, but surely one that can be tackled with grit and determination. There's a secret to making that ascent far less stressful and ...
Service profitability

How to make profitable services focusing on 5 simple steps

How to make profitable services focusing on 5 simple steps. Running a profitable service-based business that runs like clockwork with healthy profit margins can be ...
Business risks of AI

Chat GPT: “What are the business risks of Artificial Intelligence”

Whilst it may seem light-hearted, as artificial intelligence becomes a much more important part of business and how they run, it’s crucial to understand its ...

Make use of our financial tools...

Calculate Business
Profit

Calculate Business
Value

Salary and Dividend Combination Tool