R&D Tax Credits in Care Homes
R&D covers many aspects of business within the care sector – from software development to cleaning products, food products to a new light bulb – the only catch is that you are doing something innovative without a guarantee that it will be successful – this means that Care Homes have many ways to qualify for R&D!
So, what is R&D?
R&D stands for research and development. Research & development is a government incentive designed to boost innovation across multiple industries, including care homes. This is an opportunity for you to reduce your corporation tax bill or receive a refund from HMRC based upon the working hours your business dedicates to R&D.
UK Care Homes which spend time creating new products and services, improving existing ones or extending the overall knowledge in their field can claim tax relief for their R&D activity.
The government scheme is designed to drive forward innovation by supporting care homes who seek to improve or overcome challenges or uncertainties in their products and processes.
Data from Catax found that although around 800,000 businesses are likely to be eligible for R&D tax relief, just 5-6% are claiming it. This goes to show that the definition of R&D is much broader than most people think!
What makes me eligible for R&D Tax Relief
The key is in the name – researching into your own new idea and/or developing it. The idea doesn’t even have to be successful – as long as you can state that you have tried something new in the past, you can claim back costs based on the time it has taken, plus the cost of the products.
Things that can be claimed are, but not limited to:
- A new cleaning product
- A new food product
- A new piece of technology (E.g., a database of residents that you have created in house)
- Creating furniture (your own blueprints)
- Making meal/exercise plans for residents
- Research alongside Universities (You could be finding a way to improve the quality of life for those with cognitive impairment, for example)
These are just some vague ideas of what you can claim. As you can see, everything on this list could be described as new and innovative, however, they also carry an uncertainty whether they will succeed. That is exactly what HMRC are looking for.
How does it all work?
It all starts with a free, no-obligation consultation with one of our innovation relief specialists. This means that finding out if you’re eligible won’t cost you a penny. Our specialist will give you an in-depth explanation of what research and development is and what qualifies – asking you for some examples of activities your business conducts that you think may qualify for R&D tax relief.
Once a basic understanding has been established, you will be asked to send across your end of year accounts, CT600, and some other basic information. An estimated figure will be made for your refund – then your claim will be submitted. We have a 100% success rate past this point – your money is guaranteed!
Examples of innovation:
Creating diet and/or exercise plans to improve your resident’s way of life?
Employing staff with a technical or scientific background?
Have you ever created your own products? (E.g., cleaning chemicals)
Are you involved in research of disabilities you see in your care home?
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.
Want to know more? Contact our team today and see how much your claim could be worth!
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 […]