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R&D Tax Relief In The UK Any Size Of Business Can Claim

The government established the R&D Tax Credits scheme in 2000 to <br>encourage UK businesses to innovate. Why? Because innovation helps <br>businesses thrive and create more jobs, making the UK cut-throat globall

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R&D Tax Relief In The UK Any Size Of Business Can Claim

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  1. R&DTaxReliefintheUK:AnySizeof BusinessCanClaim ThegovernmentestablishedtheR&DTaxCreditsschemein2000to encourageUKbusinessestoinnovate.Why?Becauseinnovationhelps businessesthriveandcreatemorejobs,makingtheUKcut-throatglobally. Asaresult,thegovernmentiseagertopromoteinvestmentin researchand developmentworkthatwillallow innovativeprojectstocometofruition. ThisiswhytheR&DTaxCreditsprogramwascreatedandisstillso ambitioustoday.

  2. TheUKR&DTaxCreditsprimarily meanthatcompaniesinvestingin technicalorscientificR&Dcanclaimupto33percentoftheirentitledR&D costsfromthegovernment.Ifthecompanyloses,thisiseitheraCompany Taxrefundoracashcreditreimbursement. ThescopeofqualifyingR&Dworkandthecoststhatcanbeclaimedare comprehensive.We’retalkingaboutsignificantfinancialinvestmentshere, suchashiringadditionalstaff,payingforequipmentandoperationalcosts, andmuchmore. R&DTaxCreditsarepossibleif thecompanyisengagedininnovation activitiestoachieveprogressinscienceortechnology.Many businesses, fromsoftwaredevelopmentandengineeringtofoodmanufacturingfirms, dothisdaily. Doyoubelieveyourcompanyhasrecently completedaneligibleR&D project?CheckoutourR&DTaxCreditspageformoreinformation. ActivitiesIncludeR&D TaxCreditRelief SeveralbusinessesareunawaretheyareeligibleforR&DTaxCreditsor arenotclaimingtheirfullprivilege.AccordingtothemostcurrentR&D statistics,thetotalsumofR&Dtaxreliefsupportclaimedforthefiscalyear endingMarch2020wasapproximately£7.4billion. Thisrepresenteda19%increaseoverthepastyear.SMEsclaiman average of£46,000annually,whichisasignificantamount tolose

  3. R&DTax Creditswouldbeavailableforthefollowingcriteria: • Defining technicalgoals; • Complexitiesmustbe identified. • Studiesofpracticability; • Examiningemergingandoperatingtechnologies; • Technologyanalysis,design,anddevelopment • Furthermore,specificindirectsupportactivitiesmaybeeligibleforR&Dtax breaks,suchas: • Management,finance,andsupportstaffservicesare mainlyrequired tosupportR&Dactivities;andR&Dtraining.

  4. SoftwareProjectsQualifyForR&DTaxRelief • ExamplesofprojectsinsoftwaredevelopmentthatmaybeeligibleforR&D taxcreditsentailthefollowing: • Cutting-edgesoftwarefornew initiativesorenhancedfunctionality for currentR&Dprojects; • Equipmentforextendingthefeaturesofsoftwareapplicationsoran • operatingsystem; • Databasesoftware,programminglanguages, oroperatingsystems additions; • Softwaredesigntoolsincludedataportability,imageprocessing,and • characteridentification. • Innovativeinformationmanagementmethods,suchasspecificobject portrayalsanddatamodels • Methodsforacquiring,transferring,altering,andsecuringnoveldata; • Newcomputerhardwarerequiressoftwaretorunit. • Softwaredesignedtorunondevicesthatcomepre-installedwith operatingsystems,suchashandheldGPS,cellphones,andtablets, or,amethodofassimilatinghardwareandsoftwareplatforms. • Engineering & Manufacturing Projects Qualify For R&D TaxRelief

  5. ProductandprocessmodernizationprojectsthatmaybeentitledtoR&D taxreliefinclude: • Uniqueproductdevelopmentthroughtheuseofcomputer-aided designsoftware. • Second-generationorenhancedproductdevelopment. • Designandcreation of toolinganddevicefixtures. • Creatingcustomizednumericalcontrolprogramsforcomputers. • Creatingnovelembedded systems. • Prototypingandsturdy three-dimensionalengineering. • Inventinginnovative productionequipment. • Developingandimplementingcost-effectiveanduniqueoperational processes. • BusinessEligibilityCriteriatoClaimR&D TaxRelief • TheR&DTaxreliefsystemisdividedintotwoparts: • theSMEplanand • TheRDECplan. • Afewfactorsinfluencewhichoneyoushouldapplyfor. • To beconsidered anSME,acompanymusthavefewerthan 500 employeesandatleastoneofthefollowingcriteria:revenueofless than€100millionorgrosscapitaloflessthan€86million. • Alargecompany isdefinedasanycompanythatislargerthanan SME.However, in certainconditions,suchasif it previouslyclaimed statesupport,anSMEmayberequiredtousetheRDECscheme(we canadviseyouonthis). • YoushouldbefamiliarwithSMEandRDECclaimsatthisstageandwhich outletyourcorporationshoulduse

  6. WhyTrustZink R&DTaxCredit Specialist Although the R&D Tax Creditsprogram is remarkably gracious, effectively applying is notoriously tricky. Rules and criteria change regularly, making it difficulttodeterminewhichchargesyoucanandcannotclaim. Over claiming can easily result in an HMRC inquiry into your overall tax affairs. Under claiming means leaving funds on the table that is lawfully yours. CollaboratingwithaseasonedR&DtaxandfundingClaimsCompany, suchasZinkR&DTaxCreditSpecialist,increasesyourcompany’s chancesofasuccessful,optimumclaim.Wemanageeverythingfrom beginningtoend,andyoupay nothinguntilyourclaimiscompensated.

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