Companies can claim payable cash credits as a proportion of their R&D expenditure or reduce their Corporation tax bill.
But many businesses may miss out because they don’t know about this incentive.
Stephen Behan, R&D Business Support Analyst at LUMO, provides expert insight into R&D tax credits for small businesses. He said: “Many businesses could be unaware that they are eligible for this incentive, while others assume that they are not eligible.
“In reality, they could be able to claim thousands of pounds.”
Any company carrying out R&D is likely to qualify for the R&D Tax Relief. The definitions of eligible R&D and eligible costs are broad and eligible activities often take place across the whole range of company operations.
Stephen said: “Businesses should be using every initiative available to support their cashflow, particularly during these tough times. For example, any company that has repurposed manufacturing lines to produce ventilators, face masks and hand sanitiser to support the Covid-19 relief efforts will be eligible to claim back cash.”
The incentive, for small, medium and larger companies, are administered by HMRC and small and medium businesses can get back up to 33 percent of the amount they’ve spent on qualifying R&D. Large companies (500+ staff and more than £100 million turnover) could get more than 10 percent of their R&D spending refunded.
Stephen continued: “The reality is that this incentive can be secured swiftly with the right guidance, and is hugely valuable to UK businesses who invest in innovation and R&D.
“Here at LUMO we work hard to dispel the myths around R&D and explain just how easy it is for business to make a claim. Investing in the future of business is vital to future success, so our aim is to help businesses make the most from R&D tax credits.”
Contact Stephen at LUMO on (01207) 460616 or Stephen.firstname.lastname@example.org
Visit the website at https://www.lumo.tax