Research and Development (R & D) tax credits are a valuable government tax relief which are available to be claimed by companies investing in innovation. Companies that spend money on developing new products, processes or services, or enhancing existing ones, may be eligible for either a cash payment or a corporation tax reduction.
HMRC guidance states that R & D credits may be available if your business “seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty and not simply an advance in its own state of knowledge or capability”, and this can include areas such as software development, or improvements to construction processes.
Even many large companies have neglected to take advantage of the scheme, and are potentially missing out on thousands of pounds in tax relief. Costs that relief can be claimed on include employee costs, staff providers, materials, utilities, software and more.
For more information, and to see if you may be eligible to make a claim, please see this HMRC guide aimed at small companies.