Reduce your Company’s Corporation Tax by Claiming R&D Tax Credits
Everyone loves paying less tax or getting a cash rebate – and R&D tax credits are an excellent way to achieve this. They’re a government incentive designed to encourage companies to innovate, and they can lead to significant savings in corporation tax. You can even get cash back if your company is making a loss.
But what activities and sectors are eligible for R&D tax credits? In a nutshell, if your company spends money on developing new products, processes or services (or improving existing ones) then you may be eligible. The actual research and development (R&D) activities don’t need to be totally ground-breaking, but you must be trying to make an advancement in technology or science.
Qualifying R&D projects
Here are 20 examples of qualifying R&D activities carried out by clients that have resulted in successful R&D tax credit claims:
- Food manufacturer that developed a range of new marinated chicken products
- Veterinary practice experimenting with low-intensity laser beams to stimulate healing
- Medical devices company developing new surgical products
- Renewable energy company experimenting with different anaerobic digester feedstocks
- Engineering company that developed new technology for wind turbines
- Composites company developing new GRP products for the railway industry
- Food processor seeking to extend the shelf life of products
- Bakery developing gluten-free products
- Distillery developing new gin and whiskey products
- Flower grower seeking to extend the growing season for lilies
- Software company developing new Point of Sale software
- Mushroom grower trialling new fertilisers and composts to improve quality and yield
- Joinery company that developed a new system for hanging doors
- Components supplier to the aerospace industry developing new anodising processes
- Architect incorporating environmental features into designs
- Engineering company developing new products for the automotive industry
- Manufacturing company developing strong and light composite materials for electric vehicles
- Printing company developing new packaging products
- Craft brewer experimenting with innovative ingredients and recipes
- Bioscience company developing new antibody tests
This list illustrates the type of activities and sectors that qualify for R&D tax credits. All of the examples involve companies seeking to develop new or improved products, processes or services. The work itself typically includes trials, testing or other experimentation as experts in the company strive to overcome various technological or scientific challenges.
Many companies across a range of sectors (e.g. food, composites, software, farming and sustainable energy) are benefitting from R&D tax credits – and your company may be able too if it is involved in these type of activities. The rules are complex and subjective, although we can help you to make the claim process painless.
If you would like to know more about R&D Tax Credits, please get in touch to arrange a no-obligation discussion.
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