What are R & D tax credits?

Research and development (R & D) tax credits are an incentive created by the government to encourage companies to invest in innovative science and technology projects and to reward them with the appropriate Corporation Tax relief.

How do R & D tax credits work and is my business eligible?

In order to qualify for R & D relief, the work must be part of a specific project attempting to make an advance in science or technological terms and must relate to your company’s trade e.g. developing new products, processes or services. It doesn’t matter which sector your business is in as long as it is a UK company subject to Corporation Tax and has spent money on qualifying R & D projects.

How can Downham Associates help?

Although the government’s qualifying criteria is fairly broad, it is important to speak with one of our experienced tax advisers in order to establish whether your specific work qualifies for Corporation Tax relief. We will also ensure that whatever reliefs are due are claimed over the correct accounting periods as the R & D tax credit rate calculations can be quite complex subject to the company’s individual circumstances.

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