R&D Tax Credits

If you’re wondering whether your company is eligible for Research & Development (R&D) tax credits, then you’re not alone! The team at Accountants Glasgow regularly works with a range of businesses, helping to understand whether the projects being completed qualify for this type of tax relief.

What are R&D Tax Credits and what are the requirements?

R&D tax credits are a government-back incentive aimed at driving forward development and innovation. If a business has been working on a project designed to improve or advance a particular product in the world of science or technology, then it counts as carrying out research and development.

It is important to note that this doesn’t just mean a new product is created, or even that the project must be successful to be eligible for R&D tax credits. Furthermore, Accountants Glasgow helps businesses of all sizes, from SMEs all the way up to large multinational corporations.

What are the requirements for claiming R&D Tax Credits?

It can be a challenge to fully understand whether your business and project meet the requirements for claiming this tax relief and that is why we always advise contacting experts like Accountants Glasgow. We can take the time to understand your project, ask you relevant questions and help decide whether you can indeed claim the tax relief or not.

To give you an idea of some of the requirements set out by the government, a few of them include:

  • The business must be undertaking the project with the aim of achieving some kind of advance in science or technology
  • The project must be targeting an issue that needs to be resolved
  • The project must be linked to the trade the business operates within, or intends to operate within depending on the project’s findings

There are more requirements than listed above, so take the time to speak to one of our experts today!

What kind of tax relief can I get and what can I claim?

If we take an SME as an example, the relief currently standards at an impressive 230%. This is because, for every £1 spent on expenditure that qualifies, the SME will start off by getting £1.30 in tax relief. This then means that for every qualifying £1 spent, the business will see a £2.30 dedication against any taxable profits.

What expenditure is eligible?

Some of the qualifying expenditure includes:

  • Staff costs
  • Software used in the project
  • Any consumables
  • Some contracted out costs relating to R&D
  • Some workers that are provided by external parties

Next steps

Get in touch with one of the R&D tax credit experts at Accountants Glasgow today and tell us about your exciting projects.