Projects and Processes for R&D Tax Claims

1. Projects and Processes for R&D Tax Claims In the year 2000, the start of the new millennium, the government introduced a programme in order to motivate scientific and technological innovation across the UK. This programme was the R&D tax claims scheme, which is a corporation tax relief that will usually lessen your company’s tax bill or, in certain cases, will entitle you to an R&D credit (a payable tax credit). This will help businesses to hire new staff and, inevitably, thrive, as it encourages companies to research, develop and invest in creativity and innovation. And these things benefit businesses in a multitude of ways. In order to benefit from R&D tax claims or an R&D credit, a project within your business must be attempting to advance in competence and knowledge in the sectors of science and/or technology. However, as many businesses are unsure of what it is that qualifies them, or whether or not their projects are eligible, Areande can help with finding out what you’ll be entitled to. If your company is spending money on the development or improvement of new products, procedures or resources, it’s very likely that you fit the bill. It doesn’t really matter which industry or area your business lies in, as long as scientific and/or technological innovation is covered in your projects. And these pursuits are entitled to receiving either an R&D credit or a reduction through the R&D tax claims. There are currently many companies who don’t realise that they are eligible for this tax relief, which is why Areande are always so happy to help, to give businesses the creativity and progression they deserve. The range for what identifies as R&D is mammoth and can exist in almost every single

2. sector. Plus, if it’s the first time you’re putting in for R&D tax claims, then you’ll usually be able to claim relief for the last two completed accounting stages. To delve into the details further, projects that progress overall aptitude, skill and knowledge, connected to sciences or technology, as well as ventures that help to work out unknown queries (in science or technology), may qualify. The company, however, must be carrying out research and development that is, in some way, connected to science or technology - but these subject matters cover a lot of scope. It doesn’t need to be laboratory based science by any means. It can also be development work in design, engineering and solving technological problems. This covers things like creating new products/services, inventing new processes, making significant improvements to existing products or replicating processes already in existence - in a new and different way. Some instances of cases that qualify for R&D tax claims, or perhaps R&D credit, are software development, engineering design, new construction techniques, bio-energy, cleantech, agri-food and life and health sciences. When looking into R&D tax claims you need to think about whether your company has a project, whether you’re trying to advance your business in the science or technology sectors, whether the project(s) enhance and expand the knowledge and expertise in those areas or if the project involves trying to solve something unclear that professionals haven’t got to the bottom of yet. If you feel that your business ventures add up here, then you may well be entitled to tax relief, and if not, you may receive an R&D credit. When applying for tax relief, you should definitely cover everything about the project/innovative activities, how they come under a scientific or technological bracket and how it advances the knowledge and capabilities of your team. Also, ensure to describe the successes and failures that have been recorded and if you were attempting to solve uncertainties, whether they have now been resolved. If there were more failures than successes or if the uncertainty was not made clear, don’t worry because that does not necessarily mean that research and development was not in play, and that you are not entitled to R&D tax claims. Additionally, it is always good to highlight relevant background, professional qualifications or experiences of the team members that undertook the R&D projects. If you’re still scrambling your brain trying to work out whether or not you’re eligible or you’re not a hundred percent sure, then you can just let Areande do the work. It is a manual and lengthy process anyway, but we can use our technology to make the process smoother, more efficient and as beneficial for your business as it possibly can be. Our portals make everything easier and our professionalism is of the highest quality. We do what we do because our passion is to encourage people who seek out innovation for themselves and their employees, giving them a platform to continue funding this research and development via tax relief or R&D credit. So, do get in touch with Areande to speak to the experts. Do the best for your business today.