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What are R&D tax credits?

In a world of ever-increasing buzzwords, and the complicated business of tax, the term ‘R&D credits’ is often bandied about as the next big thing. But what are R&D credits, and why are they important?

Research and Development funding could be massive for your business, in terms of R&D tax credits at least

If you’re a business owner, have you invested into new services, systems or products? If so, you be entitled to benefit from a Government scheme called the Research and Development Tax Credit Scheme.

When you invest into a Research and Development (R&D) project, the government can reward you at a rate of 26p for ever £1 invested. Better still, over 90% of potential claimants are missing out, either through a lack of awareness or a lack of action.

Wouldn’t your business be in far better shape by benefiting from a R&D tax credit?

How to claim your R&D tax credits back

Of course, you could claim your R&D tax credits back on your own. You can research the details of the scheme, compile any relevant information, and then apply for a rebate and submit your claim.

However, this all takes time doesn’t it? Add into that, you really need to know what you’re doing, and are you an accountant? Is it likely that it could take much longer than using a R&D tax credit claim specialist? Will you actually be saving money or costing your business money in wasting time if you do the R&D tax credit claim yourself?

Would it not be best to leave your R&D tax credit claim to the experts, a company such as DSM R&D Tax Credits?

A company that will maximise your claim in the quickest time?

Advantages to claiming your R&D tax credits

In addition to the obvious benefit of an average claim being in the region of £49,000 – who wouldn’t want that in the bank? – there are also other benefits in researching if a claim can be made under the Research and Development Tax Credits scheme.

Low Fees – often ‘no success, no fee’, and around 15%, with no upfront payment, no long-term contract and capped at £25,000 – are perhaps the biggest enticement for companies to initiate a R&D tax credit claim.

Two years to claim also allows companies that become aware of the scheme to back-date a potential claim, giving greater latitude for potential claimants.

Claims can still be made if companies did not record a profit – which could mean offsetting your business losses via a R&D tax credits claim.

Conclusion: use the right company to process your R&D tax credit claim

Of course, it’s extremely attractive for a business owner to investigate if a R&D tax credits claim could be made. However, it’s vital to find the right claims company – one which will use the correct R&D scheme, and with a high success rate (some companies are posting a 100% success rate!).

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