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Does my Start Up Qualify for R&D Tax Credits?

Am I eligible for R&D Tax Credits is a question many start-ups ask. This is because, unless you have a good accountant that specialises in the research and development tax credit scheme , few people know about the significant benefits from claiming R and D Tax Credits.

The fact is, almost all start-ups are entitled to claim R&D Tax Credits (or RDEC). As long as you are:

• Launching a new product or improving an old product
• Launching a new service or improving an old service
• Making changes to old processes or enhancing them
• Investing money into innovation

As you can see, the criteria is quite wide and almost any new start up, with a new product or service can benefit from R&D tax credits.

What Are the Benefits of Claiming R&D Tax Credits?

A lot of businesses find, that through claiming these tax benefits, they no longer need to apply for loans or grants. The reward is quite substantial. For example, the average start up claims over £60,000 in tax credits with a good accountant.

The tax benefits you receive can add up to a third of all expenditure that qualifies, that’s 33pence of every pound. That’s not to be sniffed at.

With sums such as this, it makes sense to spend a little time securing these benefits, however we’ve made it simple for you to claim through our website.

What Years Can I Claim Research and Development Tax Credits For?

If you’re found to be eligible for this relief, you can claim for the previous two years of accounting periods. This could add up to over £100,000 in tax relief.
If you make the claim in 2018, you can claim for 2016 and 2017 too. Just talk to us and we’ll ensure you claim the maximum amount.

What Counts as Qualifying Expenditure for R and D Tax Credits?

When you make a claim for tax credits, your expenditure will be examined. There are types of expenditure that can be put forward to make you claim.

This includes:

• Money spent on freelancers, contractors or staff, inclusive of pension and National insurance for employers

• Expenditure on basic utilities used in the process, such as electricity
• Money spent on various types of software

Can I Still Apply for Grants if Claiming R&D Tax Credits?

You can still apply for grants, loans and funding if you make a claim. Claiming R&D could mean you need to apply for a lot less, however you should look into other sources of funding for your start up business.

What’s the Quickest Way to Claim?

To claim quickly, simply contact us. We’re experts in this field and can ensure you receive all the money you’re entitled to.

 

Jamie Smith

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