Hospitality R&D Tax Credits
Businesses in the UK have been given the impression that Research and Development is only aimed towards scientists and people creating specialist technology – however this is not the case.
Hospitality is an underused section of R&D – with a study concluding that 3 out of 5 restaurant managers have never even heard of it! This is a problem because there are a lot of R&D activities that go on behind the scenes in restaurants, hotels and similar, which are never claimed for.
So... what is R&D?
Research and Development is all about uncertainty; if you undertake the process of either ‘researching’ and/or ‘developing’, you could be eligible for a claim.
An example of R&D in Hospitality would be creating a new system to avoid gluten free products from making contact with non-gluten free products.
Just 5% of eligible limited companies actually submit R&D claims, resulting in billions of pounds of tax relief to be unclaimed every year.
What makes me eligible?
- You must be a limited company in the UK, subject to corporation tax
- You must have carried out research and development into new products or processes
- You must have spent money on these projects
What are examples of claimable projects within Hospitality ?
- Databases – If the business has created a unique database to track, say, how well each dish is doing, it could be considered R&D.
- Structural – The business could have had unique construction processes put into place.
- Reducing Energy Consumption – An investment to reduce your carbon footprint which has been developed specifically for your company.
- Products – A claim could be submitted if you spend X amount on researching into or developing your own cleaning products, for example.
These are only examples. The rules of R&D are not rigid, they are put into place to reward and refund those who are dealing with an uncertainty. The result of your R&D doesn’t have to be a success either, you can be eligible for a refund even if the project was unsuccessful!
Did you know?
Since the introduction of the legislation in 2002 more than £27bn has been claimed from HMRC
Even where 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.
Want to know more? Contact our team today and see how much your claim could be worth!
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