HMRC and the R&D Tax Credit Schemes
Businesses can at times get to incur some costs for the development of processes, software and services. A business can actually get to claim these costs back in terms of tax deductions or cash repayments. They are the ones known as the R&D tax credits which are basically a corporation tax deduction and at times may be received as cash repayments from the HMRC. To ensure that you get the maximum of these benefits and R&D tax credits, it will be advisable for you to consider getting the services of the professionals in tax preparation.
The main driving motive that actually made the idea of the R&D tax credits scheme was for it to be a means to spur and encourage as much of an increase in the expenditure that a government saw into the research and development activities or projects. The R&D tax credits scheme actually happens to be one of the schemes that has been seen as a sure and core incentive that has enabled the government encourage as much investment by companies in research and development projects. This scheme actually enables companies have recovered as much as 33.35% of what the company actually gets to spend on research and development projects and undertakings recovered in cash repayments through the HMRC.
It is often the case that a number of businesses do not quite realize that they actually qualify for R&D tax credits and even for those that realize this, they many a time fail to claim their full entitlement. This scheme, the R&D tax credits scheme and plan has actually been in business for quite some time, spanning more than 15 years since its establishment and quite a sum has been recorded in the claims that are paid on an annual basis. The SME category of businesses is as well not excluded from these benefits as they have as well recorded such high claims in their ranks for the R&D tax credits.
Looking at the qualifications a company needs to meet for them to qualify for the R&D tax credit schemes, basically it can be said that any company and irrespective of the industry will stand qualified for the R&D tax credits. All that will count for their preliminary qualifications is the fact of them having an undertaking in development activities that seek to end in an achievement in advancement in technology. If at all your company happens to be taking some kind of risk by innovating, improving or developing a process, a product or a service of some kind, then this is a sure sign that you can rely on to tell if at all you qualify for the R&D tax credits.
One test to help you determine if at all the undertaking actually qualifies for R&D tax credits is looking if at all your project team faced some sort of technological uncertainties at the beginning of the particular project.