R&D Myths Explained
The truth is, Research and Development is a widely misunderstood benefit which most companies are missing out on. This is simply due to the amount of incorrect or vague information surrounding the subject. The good news is, we know everything there is to know, so lets debunk some of the most common misconceptions surrounding R&D Tax Credits.
1 - R&D Tax Relief is only for companies with laboratories
Wrong! While companies involved in basic research are clearly prime candidates for R&D Tax Relief, the relief is about encouraging applied science – solving a customer’s problem or a production issue using known scientific and/or technical principles. Problem solving on the shop floor, in the field, on the site, behind a computer – all of which may qualify for R&D Tax Relief!
2 - You can only claim on successful projects
Nope! You can claim R&D tax credits for any eligible Research and Development project whether it was successful or not. This scheme after all is supposed to encourage risk taking and innovating allowing businesses to re-invest into new projects by using this scheme.
3 - You are only able to claim on the current financial year
Incorrect! You are actually able to claim up to two years from your current financial year-end. So, if your current financial year ends soon, enquire before you lose out on a potential year’s worth of a claim! To find out how much you could be eligible for, use our R&D calculator – It takes less than 30 seconds to get an estimate!
4 - You are unable to claim if you have had other grants
It is true that some grants can make it difficult to claim, however it isn’t impossible. We have helped many businesses with claims so it is always worth finding out.
5 - Claiming from HMRC is too complicated
It isn’t exactly rocket science to submit a claim from HMRC, but it at the same time, it also isn’t very easy either. Our Specialists know exactly what to claim, which industries can claim and how to put it together in a report to submit to HMRC. We will handle the claim for you from start to finish, so you can rest assured knowing you’re getting the maximum claim possible. Contact one of our experts today to find out more.
Did you know?
The manufacturing sector the single biggest benefactor of the R&D tax credit scheme
Since the introduction of the legislation in 2002 more than £27bn has been claimed from HMRC
Even when a company is loss making, the legislation is designed to ensure that companies can still receive cash back when conducting qualifying R&D work
There’s no minimum (or maximum) amount that a company needs to have spent on R&D work in order to make a claim for R&D tax relief
Check out our R&D tax calculator
Work out how much your claim could be worth with our easy to use R&D tax credits calculator. Remember, we can claim up to two years so make sure you don’t miss out on your innovation fund.
Check out our existing projects
Even if your company has qualifying expenditure, it does not mean that you should just wing it when submitting your own R&D Claims – especially when submitting a large claim. Throughout this […]