Given the uncertain times that we're all facing during the Covid-19 pandemic, any support that's available to SMEs is certainly worth looking into. If you're currently thinking of resolving a problematic business situation such as improving your business processes, then this is the article for you.
What are R&D Tax Credits?
R&D stands for “Research and Development” and is essentially a scheme introduced by the government aimed at relieving small or medium-sized businesses (SMEs) from the costs involved in research and development projects. In order to qualify, projects must be an advance in science or technology and relate to your company’s industry. Businesses must also meet a further set of criteria which are available to view here.
Is Your Business Eligible?
SMEs with less than 500 staff and a turnover of under €100m or a balance sheet total under €86m are eligible to claim tax relief. However, companies with connected/partner companies must include their staff, turnover, and balance sheets in addition to their own when calculating these figures. You can calculate your eligibility using the Green Jellyfish R&D Tax Credits Calculator.
What Can You Claim?
If your business is eligible, you can claim for employee costs, subcontractor costs, software, consumable items, and clinical trial volunteers. This can be claimed as soon as the project commences until the project is finished. It’s also worth noting that businesses can't claim for the production/distribution of goods and services, capital expenditure, rent, the cost of land, or the cost of patents/trademarks.
How Can You Claim?
To claim R&D Tax Credits, all you need to do is enter your enhanced expenditure into the “full Company Tax Return form (CT600)”. To do this, you'll need to work out all of the costs directly applicable to R&D and can do so here. It's also worth mentioning that claims can be made up to 2 years after the end of the accounting period it relates to.
Our Clients and R&D Tax Credits
When consulting with our clients, we always ensure to highlight the R&D Tax Credits scheme as many of the bespoke business systems we have developed have proven to be compatible with the scheme in the past. This often means that our clients get the bespoke business system of their dreams, with a substantial amount of the cost covered by the government.