Britain has been issued a fresh warning over its poor record in innovation and embracing technological change, with new estimates showing a key measure of productivity fell in 2014 for the third year in a row.
Steve Govey, Client Partner at Beavis Morgan, comments:
As the saying goes “You can take a horse to water, but you can’t make it …” well, in this case, “apply for Research & Development (R&D) Tax Credits”.
The Financial Times’ recent article warns of Britain’s poor record in innovation and embracing technological change. The Confederation of British Industry (CBI) believes the focus now needs to be on spurring businesses to innovate and raise their performance.
But what many entrepreneurs don’t realise is that help is available from the most surprising of sources – HM Revenue & Customs!
The last two successive budgets have improved the generosity of R&D Tax Credits.
Profitable companies can now claim a tax reduction equivalent to 26% of eligible expenditure, and loss making companies, a whacking 33% cash back of tax they have never paid in the first place! What’s more, before the expression “tax avoidance” is shouted from the hilltops, all this is Government backed!
So what has this to do with R&D?
It is not always recognised that tax credits can be claimed in respect of developing new or improved products, processes, services or systems. So the brigade in the white coats and goggles need not be involved, and, subject to a few safeguards, applications can relate to improved methodologies within your company, rather than the invention of a three dimensional widget that will conquer the universe. Most expenditure is normally a proportion of employment costs paid to company staff, but consultancy and other expenditure can also qualify.
Next step: Can you tick these 3 boxes?
1 Expenditure is by a Ltd company?
2 The company owns the end result?
3 Technology in some form is used to deliver the innovation?
If so, please contact us to set the benefits in motion. Our proven methodology offers a painless approach towards obtaining R&D Tax Credits.