R&D Tax Credits
Introduced in 2000, R&D tax credits are the Government’s way of encouraging exciting new products and services. By helping to lessen some of the financial risk for technology companies, the Government hopes that they will discover new and innovative techniques to make the UK more competitive internationally.
The Government’s R&D tax credits scheme isn’t just for companies with R&D departments. In fact, any company that spends money attempting to improve a product or service, through a technological advance, using qualified staff and appropriate project controls, and where there is a doubt that the project will be a success, is likely to be eligible.
From April 2011, companies will be able to deduct up to 200% of qualifying expenditure when calculating their profit for tax purposes. You can even claim R&D tax relief on expenditure that is up to three years old. The exact size of the tax credit will fluctuate depending on the size of your company, its tax rate and the number of your activities that are eligible.
If you think you potentially should be claiming R&D tax relief, then please do not hesitate to contact us immediately.
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