All You Need to Know of the Basics of R&D Tax Credits
By and large, talking of R&D Tax credits, these can be such a complicated affair and topic. If at all you are facing such a problem coming to grips with all things R&D tax credits this post is just for you. Here you find a guide on some of the basics you need to know about R&D tax credits. Learn of how to tell of you qualify for R&D Tax credits, what amounts they are that you can claim and get back and how to claim the R&D tax credits all on your own. Over and above this, if things get thick and tricky as you try making your claims for R&D tax credits on your own, no need for panic. The team at Granttree will be all ready to get it done. We’re here to help. Read on and learn more on R&D ta credits, the basics you need to know of on this subject. Read more here
Basically, R&D tax credits are simply tax breaks that have been put in place by the UK government that allows enterprises claim a percentage, up to 33%, of their R&D costs. R&D costs are simply the research and development costs. What’s interesting in all this is the fact that you can actually claim for these tax credits irrespective of the success of the project undertook on research and development. Whether you made it with the project on R&D or not, you happen to stand eligible for making a claim for R&D tax credits. See https://granttree.co.uk/r-d-tax-credits-guide/
From the above we can see the fact that SMEs, both the profit making and the loss making ones, can actually get back up to 33% of the costs that they actually got to incur on research and development. This tax break was effected by the UK government to serve as an incentive to SMEs to invest more in research and development projects and as such spur growth and development in the field of innovation and invention. Actually as much as 33% of what you get to spend on research and development, for as long as it is qualifying R&D, will remain an amount you can claim from the government at the end of the financial year or project. And the 33% is for the SMEs while for the larger entities, the percentage stands at 10% of the costs incurred on R&D projects.
This figure can be paid as a reimbursement, a corporation tax refund or it may be in the form of a negative corporation tax at the end of the year.
Find out more https://www.youtube.com/watch?v=QMrklnlp3Bw