In the 2022 spring budget, the former chancellor announced a reform of the Research and Development (R&D) tax incentives scheme which means many more businesses can claim back tax relief.
By offering generous incentives where HMRC gives back to those undertaking projects to achieve better innovation and productivity, the government hopes to keep the º£½ÇÊÓƵ at the cutting-edge.
Knowing the impact the monetary returns can have and so that even more can take advantage of the relief on offer, the government has widened the net of what can be claimed for - however, often businesses either aren't aware of the scheme or find the process too confusing and lengthy to complete on their own.
Here to help is , a º£½ÇÊÓƵ-owned, independent business which specialises in the specific tax relief incentives on offer. Knowing the ins-and-outs of the scheme so it can pick up the different eligible aspects of its clients' projects, the company is a reliable and genuine help in an often unclear process.
In just the past 18 months, Acute Business Advisory has helped Midlands businesses claim back £3.6m in tax relief. Read all about it .
Bust the myths of R&D tax relief with our FAQ and find out how you could claim…
Are you eligible for R&D credit?
R&D tax credits if your company is undertaking innovative projects which help you to move away from your industry standard and become more competitive.
In terms of who can apply, every º£½ÇÊÓƵ limited company is eligible for the incentive, even ones which are loss-making. However, different cost recovery rates are applicable depending on certain criteria.
What can you claim for?
R&D eligibility begins when a project starts to resolve a form of technical uncertainty in the field of either science or technology and ends when the uncertainty is overcome.
Examples of projects could be developing a new product or service, streamlining processes, becoming more sustainable, or translating concepts, knowledge, or equipment from one area into another - and remember, these projects do not need to be successful to claim.
Following the reform of the scheme, all data and cloud computing costs associated with R&D, including storage, will qualify for relief, as well as certain expenditure which takes place overseas for R&D activities.
The costs recovered for the previous two fiscal years of the project could be for payroll, consumables, IT software, travel, subcontractors and externally provided workers. Recently added as a qualifying cost was pure mathematics to support sectors such as AI, quantum computing and robotics to name a few.
Is it tax avoidance?
No - the scheme is about tax relief, not tax avoidance.
It has been set up by the government to improve the state of innovation across the country. While it isn't necessarily a reward as it is simply claiming back some of what you've already spent, it's a way for the government to assist those trying to improve º£½ÇÊÓƵ offerings.
Remember, these tax claims and the money returned are directly made directly to and sent directly from HMRC so you can rest assured that, if you're genuine in what you're applying for, it is legitimate.
But don't panic - that's the point in 's help, to consider eligibility for each of the activities involved within your project and work closely with you to assess which of the costs accumulated which could be reclaimed.
Are there any negatives?
Like most things in life, there are some who take advantage of the system and cause issues for businesses simply looking to utilise the offering.
Thankfully, with Acute Business Advisory, you know that you are dealing with an independent, º£½ÇÊÓƵ-based, genuine business which has no ulterior motive than to help you get what you're rightfully owed. Not a company which relies on telemarketing or pushy sales tactics, the Midlands-based business works solely on referrals and doesn’t tie anyone into a contract - believing that repeat business should be based on the merit of good work.
Acute Business Advisory has the aim of helping local businesses not only reach their potential, but exceed them. It is sponsoring the Innovation in Business Improvements Award at the , set to launch soon.
For about what Acute Business Advisory can offer or to find out how much you could receive and start your claim, get in touch .
