Research & Development
Generally speaking, a project will qualify as R&D if it aims to advance the overall knowledge or capability in a field of science or technology where there is scientific or technological uncertainty. A qualifying project could create or significantly improve a process, material, device or product which increases knowledge or capability in a field of science or technology.
There is a common misconception that qualifying activities are limited to pure research by technicians in laboratories; this is not the case. Any kind of innovation may constitute qualifying activities. If the answer to any of the following questions is yes, then a claim may be possible:
- Have you automated previously manual processes?
- Have you modified manufacturing processes, maybe for specific customer requirements?
- Have you developed new products or upgraded/refined existing products?
- Have you devised bespoke software for a particular purpose?
- Do any of your technical staff undertake research/problem solving?
- Are you market leaders in your field?
- Have you created patents over any of your products?
All of the technical description aside – if your company qualifies to claim R & D tax relief any of the costs below can be claimed at 225% for tax relief:
- Staff costs (including employers pension and employers NI, but not benefits in kind)
- Externally provided workers, eg agency staff (65% allowable)*
- Consumables used directly in the R&D process
- Power, water, fuel used directly in the R&D process
- Computer software
- Subcontracted R&D costs can be claimed (65% allowable)*
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Stuart Hall & Co are an accountancy practice with a clear difference, they do genuinely care about your business and aim to give you the very best advice and support. We are a software company investing a considerable amount of time and resource in the development of new functions and features of our product (SkillStation) and the supporting processes and services. This means that we are eligible to apply and claim for Research & Development (R&D) Tax Credits. Rather than try to fumble through this we find the expert help from Stuart and his team invaluable in ensuring that we submit an accurate and well-presented claim each year, which helps reduce our Corporation Tax bill and support future development. It's always better and wiser to enlist the support of professionals in areas such as this and I would recommend Stuart Hall & Co. without reservation.