R&D Tax Credits for London business owners
Whilst all business owners set goals, apply innovation and take risks, there are some who take it to a whole new level. If your company carries out research and development as a means of improving or developing products, services or software, you should be eligible to apply for R&D Tax Credits.
"The team at TreyBridge have been outstanding in resolving issues left by our previous accountants. Fair monthly pricing, friendly service and proactive advice. What is not to like!"
Holmegarth Business Services
Why is R&D so important?
The UK is a nation that thrives on creativity and clever thinking. R&D Tax Credits are designed by the government to incentivise this mindset, encouraging businesses to experiment as a means of making the world a better place. When a company invests time, money and effort into exploring the possibility of better solutions, it’s only fair that it’s rewarded for its hard work and dedication.
There are multiple advantages made possible by research and development. The most obvious is that you’re enhancing product lines and services, but that’s not where the benefits end. When done well, R&D can achieve so much more:
Solve problems faced by your target audience and customer base
Optimise specific areas of operations, which can result in lower costs, streamlined production and logistics, and a reduced carbon footprint
Establish a competitive edge by offering the very best version of a particular product
Improve your company’s reputation and attract top talent
Increase sales thanks to a superior offering
Showcase your company’s dedication and focus when applying for finance and taking on investors
Acquire patents for new products, ensuring sustainability within your marketplace
How do I qualify for R&D Tax Credits in London?
As long as you can prove that you carry out legitimate R&D, you should be fine. For instance, if you or your team started a project not knowing what the result would be or if the goal was even achievable, and the process led to a clearly defined outcome, you’re good to go. Even if the result wasn’t what you had hoped for, the point is that you carried out R&D to establish a clear picture.
If you’re eligible, you can claim up to 33% of your research and development expenditure. Whether your project is relatively small or you spend huge amounts on R&D each year, claiming this tax relief is a very wise decision. The amount that HMRC decides you can claim will then be recovered by your business either as a cash payment or a reduction in Corporation Tax.
The benefits of R&D Tax Credits for London businesses
Open to all sectors and industries
A wide range of costs are eligible
Achieve more with a smaller annual budget
Frees up more cashflow, which can be invested into additional R&D or other areas of your business
There’s no minimum claim requirement
You don’t even have to be turning a profit, you can still claim if your company is making a loss