Frequently Asked Questions
What are R&D Tax Credits?
R&D Tax Credits enable companies that incur costs in developing new products, processes, software or services to receive a cash payment or corporation tax deduction from HM Revenue & Customs (HMRC). The R&D Tax Credits incentive is designed to encourage innovation and increase spending on R&D activities for companies operating in the UK.
How much are R&D Tax Credits worth?
Profit making SMEs can claim back 26% of eligible development expenditure and loss making SMEs up to 33% by way of a payable tax credit (cash). Large companies can claim back 8.8% through the Research and Development Expenditure Scheme (RDEC). Eligible expenditure includes staff costs, agency workers, contractors, software licenses and consumable items.
What sort of work qualifies for R&D Tax Credits?
Any project that aims to make an advance in science or technology or to make an appreciable improvement in existing technology may be eligible for R&D Tax Credits. As part of the Tax Cloud process our experienced specialist consultants review the details of your projects and can offer you more guidance if necessary.
What costs are eligible for R&D Tax Credits?
You can claim direct and indirect costs for any eligible project. These include staff costs (salaries, employer’s NI, and company pension costs), sub-contractor and agency worker costs, and the cost of prototype materials, amongst other things.
I need to find out more. Can you help me?
Of course! Use the Contact form to get in touch with Myriad Associates. Our experienced specialist consultants can help you maximise your R&D tax relief claim.