UK companies have claimed thousands in tax credits – can you claim?
The latest HMRC figures show that although more businesses are benefitting from R&D Tax Credits, not everyone knows about them yet.
For many entrepreneurs, the key to success is exploration and innovation leading to notable achievements in their field. And while a creative spirit is an important quality in any business leader, so is financial prowess. It’s likely that businesses are doing work that qualifies them for a Research and Development (R&D) Tax Credit and the substantial cash injection that follows.
So what exactly is an R&D Tax Credit?
The R&D Credit is a business tax credit that can generate thousands for UK businesses of all sizes and industries, when they have developed a new and improved product or software. Any employees who have assisted in the development or construction of these kinds of activities could also stand to profit from making a claim.
The figures
The average pay-out across the UK is currently marked at £50,000, according to HMRC data.
How can it be used to grow your business?
According to figures released this month by the HM Revenue and Customs, there are more claims for R&D Tax Credits than ever before. The total amount of R&D support rose to £2.45bn in 2014-15 – an increase of £675m (38%) from the previous year. In addition, the total value of R&D expenditure against which claims were made was £21.8bn in 2014-15, an increase of 31% from the previous year.
This trend identifies that R&D Tax Credits are becoming an increasingly attractive option for businesses looking to innovate and develop their services. However, despite the scheme’s success, the increase in the total number of claims made by SME and large companies alike was much smaller than it was last year.
In truth, many companies are still unaware of the R&D Tax Claims lifeline and don’t know what it is worth to them. Ultimately, it’s great to see a positive trend of R&D across the UK, but more needs to be done to educate businesses about the fantastic positive impact this incentive can make.
