The Research and Development (R&D) Tax Credit Scheme is a government backed scheme intended to encourage companies to develop their products and processes by encouraging investment in innovation.
This is a company tax relief that can either reduce a companies tax liabilities or for some small or medium sized companies, provide a cash sum.
Many people do not feel that they carry out Research and Development, but since the scheme was launched in 2000/0, more than 74,000 claims have been made awarding over £7 billion of relief. The majority of claims come from the manufacturing industry or business services, but any industry can apply so long as the activity undertaken qualifies.
If you can answer yes to one or more of the following questions, you could be eligible:
- Have you made any bespoke products for your customers?
- Have you developed any new products?
- Have you undertaken and ‘in-house’ design work?
- Have you developed or improved any software?
- Have you made any environmental improvements to your processes?
- Are you regularly solving customer’s problems?
- Do you consider yourself to be a market leader in what you do?