To encourage innovation, the government rewards UK businesses for investing in the development of new products, processes and even enhancing new ones.
But what actually qualifies as innovation? You’ll be glad to hear that the requirements are quite broad:
- There must be an advancement in the project that you are working on
- It should overcome a specific uncertainty, whether this be technical or scientific
- The work must not be easily deducible by other experts in your field.
So essentially, if you’re making a product or process cheaper, faster, larger/smaller etc then that’s an advancement and your project could qualify for R&D tax credits.
Qualifying for R&D tax credits
The reliefs available to you will depend on the size of the enterprise. Small or medium-sized enterprises are eligible under the scheme i.e. an enterprise with less than 500 employees, a turnover not exceeding €100,000,000 or a balance sheet not exceeding €86,000,000. If your enterprise is larger than this, you will still be eligible under the Large Company Scheme.
Qualifying expenditure can range from employment and materials to energy and software.
We are holding an Innovation drop in day on Thursday 30 November 2017, to help identify if you are missing out on R&D tax credits, and we can even go back two years if you think a claim may have been missed. I would encourage you to come along and register here.
If you would like to discuss this is more detail, please do contact Michael Burgess or Rebecca Thorley on 01782 279615.