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Your Ultimate Guide to HMRC R&D Tax Credits

Here in this guide, we will be taking a look at all you are to know on the innovation, research and development grants. Learn of the R&D tax credits.

If at all you are established as a corporation, then you need to know of the fact that there are the R&D tax credits are essentially corporation tax relief programs that help lower your corporation or business’ tax bill. If at all you are a small or medium size business, you will have the alternative of going for the tax credits which are often given in the form of cash sums paid by the HMRC. In order for you to qualify for the R&D tax credits, there are some basic qualifications that one should have met. These are such as the fact that your firm must be liable for the payment of corporation tax. The other qualifying aspect for these would be such as the fact that your project should be one that qualifies for relief.

Moving on, the other issue that needs to be well understood is what kinds of research and development projects would actually be considered to be qualifying for R&D tax credits for tax purposes. For your project to qualify, it generally has to meet the rather detailed criteria set out by the HMRC. A project would generally qualify for the tax credits if they happen to provide an advance in science and technology. This project should be one that is actually related to what your business does or intends to do when established, for the startups. For the small and medium size business intending to claim these credits, they need to own intellectual property that may be arising from the project.

The R&D tax credits are open for claim by both the small and medium scale business and as well the larger corporations. This is all provided that the company is liable to corporation tax.

By and large, even though from appearance it may seem so easy and simple to tell what it is that qualifies for the R&D tax credits, the reality is that the finer details of what qualifies expenditure happen to be telling a lot more of stricter regulations for tax purposes. Thus it would not be as advisable for you to assume that all of your expenditure would qualify for R&D tax credits. From this, we see the fact that it would be so important and advisable for you to contact a HMRC R&D tax experts and or check the R&D tax relief rules here so as to source for the guidance required for you to make such a successful application for these tax relief and credit programs.

All in all, it can be well said that the rules and all that goes into R&D tax relief and credits can be quite complex and overwhelming and as a general tip to get around them, get in touch with the experts.

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