Could you save money through Research and Development tax relief?

It’s amazing but there are still many limited companies who are unaware of the major savings they are entitled to in tax relief if they are involved in Research and Development. Have you given any thought to it yet? Here’s an example that may just sway you.

During the past year we have been helping clients make successful claims for R&D and the largest we have managed so far within the practice resulted in a client saving more than £30,000 in corporation tax.

Qualifying expenditure can include:

● Staff wages
● Consumables
● External labour
● Software

Even companies who are loss-making but involved in R&D are entitled to claim a tax credit.

Clients we have helped in making successful claims come from a range of sectors:

● Manufacturing
● Groundworks
● Brewing and distilling of beverages
● Farming
● Catering
● Fitness

In more detail

Companies can claim enhanced tax relief from corporation tax for qualifying activities on projects undertaken in a business relating to advances in science and technology – regardless of whether the projects are successful.

It’s a very valuable relief for companies, worth 230% of qualifying expenditure, and is aimed at encouraging innovation.

Many small and medium companies are still not claiming what they are entitled to because of a general lack of awareness. Relief is only applicable to limited companies but something to bear in mind is R&D qualifying activities cover much more than those carried out by people in white coats!

A good example of this is one of our clients who paid someone to create a bespoke online link known as an APl which connected their stock control software to their website ordering system. This creation fitted the R&D criteria.

We would urge anyone who hasn’t already considered the tax relief available on R&D to give it serious thought and contact us for some professional advice. It’s quick to apply for but does require specialist knowledge to identify suitable R&D projects and make a claim.

Call us on 01691 662282 or email info@hudsonlm.co.uk to find out more about how we can help you.