Hey there! Audeo here. We just wanted to go into a bit of further detail about Research & Development Tax Credits.
‘Research & Development Tax Credits’ is the name of a UK government scheme that was set up to provide support and relief to businesses that seek (or previously sought) to make progress, drive innovation, and explore niches with great potential in science and technology.
Despite the focus on science and technology, Research and Development Tax Credits are not limited to facilities such as laboratories, testing centres, and chemical plants, to give a few examples. In truth, these tax credits can be claimed by any business that has been working hard, or aims to work hard, in the name of advancements in their field, sector, trade, or industry. There’s further good news too, in that unlike many other credit schemes, unsuccessful projects remain eligible.
Innovation drives countries forward and helps them to fuel growth and prosperity by transforming entire industries, systems, and processes. By offering tax relief, the government is thus incentivising innovation, a very good idea by all means. The money saved by these tax breaks can be significant, allowing for new equipment, team expansions, and new facilities to be invested in.
Whether your project has finished, is active, or is yet to begin, you remain eligible, as long as you meet the following strict criteria…
To get R&D relief you need to explain how a project:
You must also
Note: If your project has finished, you remain eligible for two accounting periods.
Audeo can help you with this part to ensure that when you reach step five, you will be approved, but more or less, the process goes like this:
At the end of the day, these tax credits apply to such an unbelievably wide spectrum of businesses that if you’ve spent some money on research and development in some form, you are well worth applying. If you’re not sure what falls under the research and development umbrella, essentially it’s taking a risk (spending money) to try and solve scientific or technological uncertainties. That can mean developing new products, processes, and services, or modifying existing ones.