Typically it’s the larger companies that are aware of and take advantage of tax incentives to help their businesses grow, but many smaller UK companies are missing out on government cash injections averaging £54,000.
It’s easy to look at your business and assume that you don’t qualify for R&D tax relief, after all, you don’t have a laboratory and no-one wears a white coat.
But it’s this misinterpretation which is stopping businesses who qualify for the scheme from benefiting from it.
In fact the R&D Tax relief scheme launched in 2000, is designed to incentivise and reward companies for investing in innovation and process improvement at all levels.
Despite the majority of claimants coming from the manufacturing, IT, science and technology sectors, businesses from virtually all sectors are able to benefit.
Any companies that spend money developing new products, processes, or services; or enhancing existing ones, are eligible for R&D tax relief which can be claimed back for up to 2 years.
Some examples are taxi businesses adapting vehicles for disabled and disadvantaged occupants, clothing design & branding companies designing and developing functional apparel derived from sustainable and recycled materials, to name just a few,
The list goes on. As long as the company has invested in some form of innovation or process improvement, it may qualify.
Companies able to identify qualifying projects and qualifying costs, can reduce their tax bill or claim payable cash credits as a proportion of their R&D expenditure, even if the project failed.
The cash can be used in any way a business decides such as further accelerating R&D or hiring new staff. It can be applied for every year.
Many companies use a specialist business advisor in order to assist with the process and maximise the claim.
ZLX Business services are highly experienced in R&D Tax Claims having worked with businesses across 40 different industries. As a result they are able to achieve average returns of £77,000, considerably ahead of the national average of £54,000.
To see if your company qualifies for a rebate, contact Jonathan at email@example.com for a free assessment.