Each year thousands of UK companies claim billions in R&D tax credits, yet billions more undoubtedly go unclaimed, due to a lack of understanding, time constraints and misconceptions.
R&D tax credits enable businesses in any sector to recover up to 33% of costs invested in activities such as: -
· Developing new or improving existing products
· IT systems
· Manufacturing or production processes
· Testing of existing products and processes for improved outcomes
The definition of R&D is very broad. Work qualifies when a company bears the financial risk in seeking to make a scientific or technological advance by overcoming challenges or uncertainties for which the solution is not readily available, or deducible. Both successful and failed projects can qualify.
The average SME claims over £57,000 annually, and companies can claim for up to two retrospective financial years, providing a valuable cash boost for your business.
Qualifying expenditure includes an apportionment of costs for staff, subcontractors and externally provided workers, software licences and any consumed items, including utilities consumed directly in the R&D activity. Qualifying costs may also include those for staff and externally provided workers who are involved indirectly in support of the project work.
A successful maximised R&D tax credit claim is based on its technological or scientific merits. Black Crow Services works closely with the business’s technical and financial leads when preparing the claim reports prior to submitting the claim to HMRC, who administer the R&D Tax Credit Initiative.
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