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All on R&D Tax Credits

Read on in this guide and learn as much on the innovation, research and development grants. See more on this page on the HMRC 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. For the small and medium size businesses, they have the alternative of going for the tax credits instead which would often come in the form of a cash sum that is paid by the HM Revenue and Customs, HMRC. There are some basic qualifications that one needs to qualify for R&D tax relief. First and foremost, your firm must be liable for corporation tax. The other qualifying aspect for these would be such as the fact that your project should be one that qualifies for relief.

So what qualifies as R&D for tax purposes? In order for your project to qualify for the tax credits under the schedule, your projects must satisfy the rather detailed HMRC qualification criteria. In a general sense, qualifying projects would be such that generally help advance science and technology. By and large, these projects need to be such that actually relate to the company’s existing or intended trade. And looking at the SME claims for these tax credits, the small and medium size businesses that intend to claim them should be such that actually will or must own intellectual property that arises out of 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. The only thing that must be is that your firm must be liable to the payment of corporation tax.

In as much as the qualification for the credits may sound so simple, the reality is that there are lots of strict rules that will count for what qualifies as expenditure from a taxation perspective. Therefore you see the fact that it wouldn’t be so advisable for you to assume that all items of your R&D expenditure would be qualifying for R&D tax credits. It would as such be advisable for you to ensure that you liaise with an HMRC and R&D tax expert or read the R&D tax relief rules so as to get the guidance on how to make a successful application for these tax credits.

In a nutshell, R&D tax credits can get pretty complex making it so advisable for you to contact the experts and specialists in HMRC R&D Tax credits for the necessary help for your way out.

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