R&D tax credits are breaks to paying a tax that are put in place by the UK government. When you’re participating in research and development activities, you have an opportunity to reclaim up to 33% of your expenditure on R&D, even when your project ends up failing. Some of the R&D costs include hiring subcontractors, management testing, developing prototypes, coming up with manufacturing processes, obtaining software licensing, and technical analysis among other expenses. In most cases, SMEs can get back up to 33% of the expenses on research and development when their projects qualify for the break, while large companies can get up to 10% refunds. The money is paid back as Corporation tax refund and can be used for anything that facilitates the collection of research and development going forward including the purchase of equipment, hiring developers, and even paying dividends. Read more great facts on GrantTree, click here.
To qualify for the R&D tax credits, one needs to submit financial and technical information to show the HRMC that their project qualifies based on the criteria put in place for qualification. The project is likely to qualify when it is meant to provide an advance in science and technology such that it would bring up something fresh and will affect how people conduct everyday activities. The project also needs to affect a large number of people such that the scale is determined to be high enough to affect many people’s lives, and it is determined that the technical challenges involved are also significant. For a project to qualify as R&D, it has to have a technical uncertainty such that research has to be done to establish the specific effects that are expected out of the project. Something also needs to be innovative, costing a substantial amount of money, and you’re working with professionals and competent persons investigating a matter over a considerable period so that it can qualify as an R&D project. For more useful reference regarding GrantTree, have a peek here.
Various things go into determination before one gets the grant. Other than following the basic requirements that are set by HMRC, you can do with the assistance of a company that is specialized in providing help to companies that need R&D tax credits. Such services can be beneficial to helping you find out how you can qualify as well as enabling you to follow up to the process so that you can get the tax relief. Through such services, you can manage to have the tax credits to facilitate the carrying on of your project or to get refunds for a completed project so that you can make life better for many others. Please view this site https://www.huffpost.com/impact/topic/taxes for further details.