Innovation is the lifeblood of industry. For that reason, HM Revenue and Customs (HMRC) offers you generous tax relief to encourage your investment in research and development (R&D).
These reliefs can substantially reduce your corporation tax liability or better still, eliminate it all together. In some cases if you have a tax loss, you can claim a tax refund to generate a welcome cash injection into your business.
I expect that most companies perceive the relief to be for high tech sectors such as scientific or medical research – those who work in lab coats! This isn’t the case, and I’ve successfully claimed the relief for clients in a variety of business sectors. There are numerous misconceptions that I’ve detailed below:
- You can’t claim relief if you receive grants – yes you can.
- You can’t claim relief if you’re making taxable losses – yes you can.
- You can’t claim relief because you’re a subsidiary – yes you can.
- You can’t claim relief if your project is unsuccessful – yes you can.
- You need to have a patent or own formal intellectual property – no that’s not necessary.
Our clients have now saved (or been refunded) corporation tax of £2,006,035 under the R&D Scheme.
The specialist R&D team at Mitten Clarke can assist you with your R&D tax relief claims. Importantly retrospective claims can be made for the past two accounting periods which can often result in a significant repayment of corporation tax, or if a company is loss making, a claim for R&D tax credits. It is important that you therefore discover if a claim can be made as soon as possible so that you’re not missing out on any time limits. Get in touch as soon as possible.
As ever, please do get in touch if you have any queries on 01782 279615.