The Broad Scope of R&D:
At its core, Research & Development is about innovation. It's not limited to scientists in white coats working in high-tech labs. If your business is working on projects that seek to advance knowledge in its field, you might be conducting R&D without even realising it.
Who is Eligible?
Sector Agnostic: From food and beverage companies experimenting with new recipes to software companies developing novel algorithms, R&D is sector-agnostic. It's not just for the tech and pharmaceutical industries.
Size Doesn't Matter: Both SMEs (Small and Medium-sized Enterprises) and large companies can claim R&D tax relief, although the schemes and benefits might differ.
Loss-making Companies: Even if your company isn't turning a profit, you can still claim R&D tax credits. In some cases, loss-making SMEs can receive a cash payment from HMRC.
Previous Claims: If you've claimed in the past, it doesn't prevent you from claiming again. Each R&D project can potentially qualify for its own relief.
Common Misconceptions:
"We Didn't Invent Anything New": R&D isn't just about groundbreaking inventions. Even if you're making small improvements or optimisations to existing processes, products, or services, you might be eligible.
"Our Project Failed": Even if your R&D project didn't succeed, the costs associated with it might still qualify for relief. It's the attempt to innovate that counts.
"We Received Grant Funding": While grant funding can affect the amount you claim, it doesn't necessarily rule out R&D tax relief.
The myth that R&D Tax Relief Claims are only for a select few businesses is just that—a myth. By understanding the broad scope of R&D and the inclusive nature of the relief, many more businesses can benefit from this valuable incentive. If in doubt, seek expert advice to ensure you're not missing out on what you're rightfully entitled to.
Need assistance?
Please contact us using the enquiry form or call 0845 555 8844 if you would like to discuss any of the issues in this article or if you a seeking assurance that your claims are completed correctly.
