Is Your Company Making The Most Of R&D Tax Credits?
What are R&D tax credits?
R&D tax credits can give your company enhanced tax deductions from taxable profits based on your R&D expenditure. The deduction can be enhanced by up to 75% for smaller companies. That is, for every £100 you spend on R&D, your company’s income is reduced by an additional £75.
Example:
| R&D spend: | £20,000 |
| R&D relief: | £20,000 x 75% = £15,000 |
| Normal taxable profit: | £50,000 |
| Taxable profit less R&D relief: | £50,000 - £15,000 = £35,000 |
| Resulting taxable profit: | £35,000 |
Myths
• My company’s too small
• My company’s too large
• It’s too complicated
• HMRC make claims difficult
• It’s not worth it
Facts
Don’t assume all the myths are true! In 2009:
• Over 6,000 UK companies claimed R&D tax credits
• More than £600m was claimed
• 80% of the companies said the tax credit tangibly benefits their overall R&D spend
If you haven’t already considered R&D tax credits, it’s well worth looking at. And if you’re already making use of them, make sure that you’re claiming the maximum you can. You may be able to claim relief on expenditure of up to EUR7.5m on any one particular project.
We can help you obtain this valuable tax benefit:
We can:
• Explain the key aspects of the tax credit
• Provide guidance on how it will work for your company
• Identify areas where you can claim
• Identify danger areas which might limit your claim
• Work with you and your accountants to make the claim
For more information contact Sarah Anderson on 01752 675105 or by email on sarah.anderson@footanstey.com
