R&D Tax Credits are IA
Is the future of R&D Tax credits fading fast with Vince Cable and George Osborne in charge.
Currently your R&D expenditure can be grossed up, by 170% or 130% depending on the size of your company, when calculating your tax relief.
For tax purposes it’s not enough that a product is commercially innovative. You can’t claim in respect of projects to develop innovative business products or services that don’t incorporate any advance in science or technology.
Comment from Brian Williamson
Time June 8, 2010 at 8:06 am
As the leading experts in the UK on R&D tax credits we took a view on what each of the two prospective parties would do after the election (we did think it was a two horse race at that time) The Labour party were committed to maintaining the status quo which is actually 175% for SMEs (under 100m Euros and fewer than 500 employees) and the Conservatives said they would comply with the recommendations in the Dyson report which actually raises that to 200%. However the downside is that the large company scheme was to change downwards from 30% to an unknown figure. The budget statements will reveal how true they are to their word. No matter what it ends up as, it is advisable to get your claim in early especially with legislation currently allowing you to resubmit claims for up to two previous years. This is a big advantage. Even if you have been claiming you can still open up your file and resubmit for a higher amount.
It should be noted that most companies think this tax advantage is the domain of technology companies only. We have over 1100 successful claims and many are for companies such as bakeries and other non obvious sectors. If you are in doubt we provide a free no obligation assessment of your eligibility. Just e-mail us on helpinghand@jumpstartuk.co.uk
Brian Williamson