R&D tax relief is designed to encourage innovation and increased spending on R&D activities by UK businesses. It is available to any business which is liable for corporation tax and undertakes research and development activities such as creating or modifying new or existing products, processes, or services.
Over recent years, R&D claims have increased significantly as businesses are seeking out ways to save and improve their cash flow.
Tim Woodgates, associate at Moore East Midlands, Corby office, said. “We have assisted clients to identify and claim enhanced tax relief on £73m+ of R&D costs.A popular misconception is that R&D tax relief is aimed purely at medical and pharmaceutical companies.
“Because of this, R&D tax relief is often overlooked by smaller businesses who assume that they won’t qualify. This is not the case, as long as your project seeks to achieve an advance in science or technology then there can be major tax savings available.”