Innovation is the lifeblood of businesses in today’s competitive landscape. The UK government recognizes the importance of Research and Development and incentivizes it through generous tax relief programs. Our professionals can educate, mentor, and assist you in access the tax relief.
What is R&D Tax Relief?
Research and Development (R&D) Tax Relief is a government initiative designed to reward businesses for their investment in innovation. It is a financial incentive that can significantly reduce your company’s tax liability. By claiming R&D Tax Relief, your business not only saves money but also fuels its growth through innovation.
Who Can Claim R&D Tax Relief?
R&D Tax Relief is available to a wide range of companies across various sectors, including:
- SMEs (Small and Medium-sized Enterprises): Companies with fewer than 500 employees and an under £100 million turnover.
- Large Companies: Companies with over 500 employees and a turnover exceeding £100 million.
- Startups: Even companies with no previous tax liability can claim cash credits.
Key Benefits:
- Cash Savings: SMEs can claim up to 33.35% of their qualifying R&D expenditure as a cash credit, effectively reducing their tax bill.
- Tax Deduction for Large Companies: Larger companies can claim up to 10% of their qualifying R&D costs as a reduction in their corporation tax liability.
- Encourage Innovation: R&D Tax Relief promotes innovation, allowing businesses to invest in new products, processes, or services.
- Competitive Advantage: Leveraging R&D Tax Relief can help your business stay competitive by staying at the forefront of your industry.
Qualifying Activities:
To claim R&D Tax Relief, your project must meet certain criteria. Qualifying activities often include:
- Developing new products or processes
- Making appreciable improvements to existing products or processes
- Overcoming technical challenges and uncertainties
- Experimenting with innovative solutions
How to Claim:
The process of claiming R&D Tax Relief can be complex, but with our expert guidance, it becomes straightforward. Our team at KNAV specializes in helping businesses navigate the claims process, ensuring you receive the maximum benefit.
