What are R&D tax credits?
R&D tax credits are a government incentive designed to stimulate growth and to reward innovation from UK companies. The scheme has been running for over a decade and has been so successful, that it’s been guaranteed until 2032.
How do R&D tax credits work?
In short, companies spend money developing new products, processes and services; or bettering/simplifying existing ones. A percentage of this (26-33% depending on tax position) is then eligible to be paid back to the company or removed from any outstanding corporation tax bill.
Are you eligible for R&D tax credits?
A lot of companies are eligible for R&D tax credits, but they just don’t know it. As long as you are a limited company spending money on innovative projects and solving common industry problems, there’s potential for you to make a claim.