We have experience advising clients across a wide range of industry sectors.
R&D Tax Credits are a very niche part of the UK tax framework which may bring your company thousands of pounds in tax relief.
What Are Research & Development Tax Credits?
R&D Tax Credits are a niche part of the UK tax framework which could bring your company thousands of pounds in tax relief.
Tax Credits Explained
Research and Development (R&D) tax credits are a government incentive, operated by the HMRC, designed to reward UK companies for investing in innovation. Research & Development tax credits are a valuable source of income for many companies who wish to develop their business. R&D tax credits can also be a used as an investment into further research and development for your company.
According to HMRC, “Research and development takes place when a project seeks to achieve an advance in science or technology through the resolution of scientific or technological uncertainty.”
Companies which invest money into developing new products, services and processes or enhancing existing ones, are eligible for benefits such as a cash payment, reduction of corporation tax or increase in taxable losses.
What is the process to claim R&D tax credits?
Once it is clear you are eligible to make a Research & Development tax credits claim through PCL R&D, we will prepare all of the information required by HMRC on your behalf to make sure all the hard work is done for you.
Our Research & Development tax specialists will claim for your two most recently completed financial years. For example, if your financial year end is the 31st December 2020, you can claim back Research & Development tax credits for the years ending 31st December 2018 and 31st December 2019.
What can be claimed back?
R&D Tax Credits are calculated based on enhancing expenditure for research and development work, as the UK Government aims to reward innovation for SMEs and large companies.
Valid claims may be made for:
- Staff wages and other related costs
- Payments made to sub-contractors and external workers
- The cost of materials consumed
- Software licensing costs
- Payments to clinical volunteers
- Light, heat, power and other utility costs
“Thanks to the team over at PCL we know If we’re working on a project that involved R&D, we know that we’re going to get a proportion of the expenditure back, whether the work is successful or not.”
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UK businesses in any industry sector can claim R&D tax credits, providing that qualifying research and development activities are being carried out.
In the UK, innovative industries such as manufacturing, engineering and pharmaceutical are world leaders in their field due to constant technological advancements and the R&D Tax Credits scheme. It is easy to spot qualifying R&D work in these sectors, but you may be surprised to learn that our clients come from a wide range of industries that you might not necessarily expect to be eligible for R&D tax credits.
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PCL R&D Ltd
Offices 1 And 2 1a King Street, Farnworth, Bolton, Greater Manchester, England,
BL4 7AB
Tel: (0161) 543 4416
Email: info@pcl-rnd.co.uk
One of the UK’s leading specialist R&D tax credit consultants