Most business owners will wonder “Are we eligible for R&D tax credits and reliefs?” The answer is often yes.
First things first, you must be a company which is liable for corporation tax. If you currently trade as a sole trader, partnership or LLP and intend to perform a significant amount of research and development it may be worth talking to us about incorporating.
The reliefs available to you will depend on the size of the company, small or medium sized businesses are eligible under the scheme i.e. a company with less than 500 employees, a turnover not exceeding €100,000,000 or a balance sheet not exceeding €86,000,000. If your company is larger than this, you will still be eligible under the Large Company Scheme.
There’s various types of projects that qualify, first of all it must be an advancement in science or technology. It needs to be a project designed to overcome some scientific or technical uncertainty. Likewise the work that you are undertaking must not be easily deducible by others in your field. In effect if you are making a product or process cheaper, faster or larger then that’s an advancement and your project would qualify – it doesn’t need to be ground breaking.
Qualifying expenditure can range from employment and materials to energy and software. If you believe that you may be eligible or simply have a few questions please don’t hesitate to contact Michael Burgess on 01782 279615.