Research and Development Tax Credits: Understanding Your Entitlements
Government grants for Research and Development (R&D) can provide significant tax benefits for innovative businesses. These grants, typically administered through tax credits, can offer up to 186% reduction in Corporation Tax on qualifying R&D costs.
Understanding R&D Tax Credits
R&D tax credits represent a valuable opportunity for businesses engaging in innovative research and development. For companies operating at a loss, HMRC provides direct repayments, making this scheme particularly beneficial for growing businesses investing in innovation.
Beware of Fraudulent Claims
The R&D tax credit landscape has seen an increase in 'ambulance chasers' - specialist firms that cold call businesses offering to secure grants for substantial commissions. HMRC has become increasingly vigilant against spurious and fraudulent claims, implementing strict penalties for false applications. Business owners should exercise caution when approached by cold callers promising R&D grant success.
What Qualifies as Valid R&D?
HMRC has specific criteria for valid R&D claims. The research must be original and demonstrate potential for increasing profits. Qualifying projects can include computer programs, apps, or innovative processes. Crucially, the research must be innovative and unique - solutions readily available in the market do not qualify.
Professional Support for R&D Claims
For optimal results, R&D claims should be handled by professional accountants as part of comprehensive tax planning. At MG Walker Co Ltd, we bring extensive knowledge and experience in R&D claims. When necessary, we collaborate with Chartered Tax Advisers and Tax Lawyers to strengthen claims and ensure maximum benefit for our clients.
Contact Us
For more information about R&D tax credits and how we can help your business, please contact our office: