Research and Development (R&D) reliefs support companies that work on innovative projects in science and technology. It can be claimed by a range of companies that seek to research or develop an advance in their field. It can even be claimed on unsuccessful projects.
We know it’s become something of a cliché but we think it’s worth repeating – the coronavirus pandemic and subsequent global lockdown has wreaked havoc on peoples’ lives in terms of mortality and economic downturn – with perhaps harder times to come?
Economic forecasts are always a challenge to make. When the furlough scheme ends and Bounce Back Loans are reeled in, will companies survive? With cash flow and revenues stretched, R&D tax relief is something you need to consider.
Before we look at the finer details, let’s define in simple terms what R&D means to you as a business:
What you need to be aware of though is what counts as revenue expenditure.
You need crystal clear clarity on this as so often Small and Medium Enterprises don’t fully understand what can be claimed.
You can claim for:
There are different types of R&D relief, depending on the size of your company and if the project has been subcontracted to you or not. You can find more in this link, which we summarise partly below:
You can claim SME R&D relief if you’re a SME with:
You may need to include linked companies and partnerships when you work out if you’re a SME.
SME R&D relief allows companies to:
If you meet the criteria for R&D tax relief, get in touch with Wilby Jones today.