One of the biggest tax relief schemes available to UK companies is unfortunately not widely known. The Research and Development (R&D) Tax Credit initiative was created in 2000, with the aim of promoting innovation across all sectors of the UK economy. Despite many companies being eligible to apply, only 10% ever do. That leaves most companies missing out on money that they could be reinvesting back into their business.
Are you missing out on your claim?
The 90% of eligible companies who are missing out on their research and development tax benefit, do so largely because the simply do not know that the scheme exists. Any company which has invested in developing a new product, process or service could be eligible with the potential to claim back up to a third of their R&D costs. If a business is a registered Limited or PLC company and they fit the criteria, even if they are operating at a loss, can still submit a claim.
Did you know that loss-making businesses are entitled to more than profit-making ones? If your company isn’t yet turning a profit, you can reclaim up to 33% of your R&D costs while as a profit-making company you can claim back up to 25%.
Beware the deadline
While the Research & Development Tax Credit Scheme is a generous one, it is important to note that there is a two-year window to apply. For example, if your Year End is 30 April 2019 then you have up until 30 April 2021 to submit. Apply before your time is up to ensure that you are not missing out on thousands of pounds that could be reinvested back into your R&D projects.
Still unsure whether you qualify?
Virtually anything involving the creation of something new to the market will make you eligible to submit a claim; whether that’s designing a new shoe, developing an app or creating a new and innovative service. Companies large and small across all industries can qualify and if you could reclaim money to put back into your business, why wouldn’t you?
At a time where many companies are struggling due to the pandemic, a little extra money can go a long way. If there was ever a time to encourage more innovation, this is it, so take advantage of the scheme and submit a claim to HMRC.
What are you waiting for?
If you think that you are eligible and would like to apply, outsourcing to a specialist company, such as Claim Capital, will ensure that you stand the best chance of getting back all the money that you are able to claim for.
Arrange a free eligibility consultation call with our expert sales team to get your claim process started today!