Date posted: 29th Sep 2020
Albert Einstein is quoted as saying:
“If we knew what it was we were doing, it would not be called research, would it?”
This appears to be a point that many company owners continue to overlook as we continue to see new clients who are undertaking research but are not claiming R&D tax credits.
R&D tax credits can seem “too good to be true” but this is not the case. The R&D tax credits regime was introduced by HMRC approximately 20 years ago to reward those companies who are actively researching scientific and technological issues and developing or improving products. HMRC are aware that the relief is being underclaimed and actively encourage companies to come forward and make a claim for the relief.
Given the current COVID-19 crisis, we would urge all companies to explore the opportunity to make a R&D claim which could involve tax being reclaimed in relation to earlier years, which could give your business a vital cashflow boost.
It is critical that the relief is claimed in the correct format which provides HMRC with sufficient information in relation to the costs incurred and the research and development activities undertaken.
We are experts in R&D tax reliefs and our corporate tax reliefs team would be delighted to help with a claim and answer any queries that you may have. The team can be contacted at here.
Read more below:
Read more articles from our October 2020 tax news below:
- Still considering an electric company car?
- Errors in furlough claims
- Chancellor’s Winter Economy Plan
- Capital allowances – cliff edge approaching?
- Unlock funds within your company – make a R&D claim
- Retirement age and pension planning
- Get ready for leaving the EU on 1 January 2021