I want to make a claim for a Research and Development tax credit; how do I determine exactly what is classed as qualifying R&D costs?
Many companies will be aware that they may be able to claim a research and development tax credit, yet fail to research the situation further. One of the barriers stopping people from claiming is a lack of understanding over what costs qualify for the additional relief. We have created an easy to follow guide to qualifying R&D costs which is available here to download.
Identifying the correct level of qualifying costs is crucial to the whole process as the tax saving is based on the qualifying expenditure – as a broad rule of thumb, a successful company can claim relief of almost £25 per every £100 of qualifying expenditure.
How do find out what ‘qualifying expenditure’ is?
Perhaps your company has invested in a project which, having read a little about R&D, you suspect might qualify for relief. You may have;
- staff working on technological challenges
- been involved in a number of prototypes for your project
- rented premises to carry out this work
- invested in capital equipment to enable the process
- been involved in costly testing of the prototype, or
- used a consultant to assist with the software element
But how do you find out more and how exactly do you go about making a claim? Our simple guide to help you consider the types of expenses that would qualify and those that would not.
Written by professionals with many years' experience and a proven track record of successful Research and Development tax credit claims, this easy to digest guide is a must for businesses who are unsure whether their expenses would qualify for this valuable relief.
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