The Coronavirus pandemic has seen a surge in Research and Development (R&D) Tax Credit claims, as more companies have been forced to innovate and think out of the box.
When you think of innovation, many people’s minds immediately spring to the numerous Covid-19 vaccines and medicines that are being released. Research and Development isn’t just found in medicine and is found behind the scenes of many organisations. In the world we live in today, it’s about adapting and finding a way to survive in an ever-evolving economy.
Acceleration in Innovation
It’s simple – trying times means trying new things. Companies everywhere have been looking to create new products, services, and processes which will attract customers, at a time when many of those customers have been tightening their purse strings.
The pandemic has heightened a growing trend for high quality items from local UK businesses. Customers are always on the lookout for something new that offers a sort of exclusivity as it’s not commonly found everywhere else, and this is where businesses are getting experimental. In order to stay relevant, attract new customers in the marketplace, and outperform other companies within their industries, R&D projects are skyrocketing.
Research and Development has always been a large sector but, now it’s booming. If there is one positive aspect the business community can take away from the pandemic and countless lockdowns, it’s this. This influx could lead to greater R&D in the future, benefitting both companies and consumers by constantly pushing limits and creating new products, services, and processes. That being said, those future R&D projects need to be funded, and that’s when the UK government’s R&D Tax Credit scheme helps companies fund these future projects.
Why is it important to make a claim?
The R&D Tax Credits benefit was introduced in 2000 and allows UK Limited and PLC companies to receive up to 27% of their R&D costs.* If you can prove that you’ve invested in creating something new, you could be eligible for a generous cash pay-out from HMRC. That money can then be funded right back into your next R&D project, so the question is really, why wouldn’t you submit a claim?
Innovation takes place across all sectors, so if you are still unsure whether you may qualify, take a look at our previous blog post Which Sectors Can Claim Back on Their R&D Costs? where we give a more in depth look at how to qualify and which types of projects are considered.
Why should you go through an R&D provider?
This may well be the first time, or maybe not, that you’ve stumbled across R&D Tax Credits, and the thought of putting together an application on your own may seem daunting but, this is why the Claim Capital team is here.
We handle your case from start to finish with a dedicated Account Manager and R&D Tax Specialist who will work together with you to complete the claim and submit it to HMRC within a timeframe that suits your needs. Need a claim submitted by the end of the week? No problem, once we have all the information, we can get your claim out the door within 3 – 5 business days.
Still have questions or ready to get the claim process started? Get in touch with our expert Sales team to organise your free eligibility call today!
*These are the updated figures in line with the new legislation announced in the April 2023 Spring Budget.