April 2014 -
0871 218 5090
Support2business | 0871 218 5090 | www.support2business.co.uk
Nick Clegg visits the Cartwright group following their £2m grant award -
GrowthAccelerator Is a government backed initiative to help achieve rapid growth
in smaller companies. Already 12,000 SME’s have benefited -
R&D Tax Credits
Another great government initiative much mis-
“Banks are no longer lending...” True or not, the growth in alternatives is both significant and innovative.
We review highlights from the first comprehensive study.
Science and Technology Research & Development Tax Credits
Bob Watson, Managing Director of Support2business, has helped many companies reclaim Tax Credits.
Commonly known as “R&D Tax Credits”, this seems to be one of the best kept secrets in the SME world. Tens of thousands of companies are eligible to get money back from the government under this scheme, yet most companies we talk to are either ignorant of the scheme or have been misinformed about it.
Yet when their own accountants were saying it's impossible we have helped many companies get a cheque from the inland revenue ranging from £5,000 to several hundred thousand !
What is this scheme
First introduced in 2000, the scheme was set up to offer incentives to companies involved in R&D, primarily technology, on the basis that economic growth is most likely to come from this activity and that tax incentives will increase the level of innovation.
The rules are constantly changing, but currently offer a good incentive – if only you know about it and know how to apply!
The headline rules are:-
Paying corporation tax (CT)If you meet these rules and are involved in innovative technology research and development to improve your products / services, you may well be eligible to claim 225% corporation tax relief against your R&D costs, including labour.
That means that if spend on R&D you could reclaim up to 32% of your R&D “qualifying” costs as tax relief. The Inland Revenue will send you a cheque…
One drawback is that you can only claim for completed tax years. However, although you are only allowed to lengthen your tax year once (e.g. have an 18 month year) you can shorten it as often as you like. So, if you are 6 or 7 months into your year when you finish a project – shorten your accounting year and claim the tax relief at once!
What to do now
You can look all this up on the government website at www.hmrc.gov.uk/ct/forms-
or give us a call on 0871 218 5090