How to claim a critical tax boost for your SME
Businesses are currently missing out on thousands when it comes to R&D Tax Relief, in particular SMEs.
The R&D Tax Relief incentive is designed to encourage innovation and increase spending on R&D activities for companies operating in the UK.
It’s one of the government’s top incentives for encouraging investment in research and development and allows up to 33.35% of a company’s R&D spend to be recovered as a cash repayment.
Many businesses don’t realise that they qualify for R&D Tax Credits or that they are not claiming their full entitlement.
This form of government tax relief has been designed to reward and encourage innovative behavior in businesses and can amount to thousands of pounds each year, which some businesses fail to claim back on.
In turn this can have a knock on effect on innovation, and in some drastic cases affect the business being cash rich as they are not claiming for R&D tax relief.
How to make an R&D tax claim?
It can often be difficult to decipher what makes a business eligible for R&D tax relief, so it is essential to search this in depth making reference to the industry you are in, whether that be engineering all the way to gaming, as there are multiple industries that are eligible for this type of relief. Once you are aware that you are eligible it is then time to build a claim to submit to HMRC.
The process of doing this individually can be grueling, so it is important to go with a trusted external partner that will be able to guide you through the process, especially if this is your first time doing a claim. An external partner such as Tax Cloud works as follows:
- Businesses sign up to Tax Cloud and describe their R&D projects, activities and add their costs into the system
- A specialist R&D tax advisor from Myriad Associates will review the information provided and ensure the work undertaken qualifies and that a claim will be possible under the scheme’s guidelines
- Once an advisor has approved the technical aspects of the claim, costing experts will look to identify any additional spend that could be claimed under the guidelines and ensure your claim is fully maximised
- Tax Cloud then takes all the relevant information and produces a claim report which gets submitted to HMRC on your behalf. Tax Cloud also deal with any queries raised by HMRC.
- The claim is then approved by HMRC and the company receives their tax credits for their R&D.
At the end of the process you will receive your claim, which can take anything between 4-6 weeks.
To find out more on whether you are eligible, visit taxcloud.co.uk
- Submitting R&D tax claims since 2001
- 100% success rate
- Over £100m claimed and counting
- Industry leading specialists
- In-house technical, costing and tax experts
- Member of the Research and Development Consultative (RDCC) committee
Meet some of the team behind Tax Cloud