The best business advice, opinion, news and expertise in Greater Manchester and further afield.

Tuesday, 25 August 2015

Member Blog: 5 Myths about Claiming R&D Tax Credits

By Mark Evans, MD at R&D Tax Claims (North) Limited

The R&D Tax Credit Scheme is a government-backed initiative instigated by the EU to encourage British companies to develop their products and processes.

However, there are myths surrounding tax credits.  Don’t allow your business to fall victim to them!

5 Biggest Myths about claiming for the R&D Tax Credit Scheme

Myth 1: The R&D Tax Credit is only for the big companies.

Fact: This is exactly what too many small and medium sized businesses think.  The R&D tax credit is available for small and medium businesses, but you do need to put in a claim to get it.  All too often SMEs act as though there was an invisible rope barring them from making a claim.

Myth 2: The R&D Tax Credit is only for companies that invent something revolutionary.

Fact: The R&D tax credit is designed to encourage innovation. Therefore, it is available to companies who are attempting to improve existing products or processes. So, this simply isn’t the case.  Any UK company which undertakes problem-solving activity in order to develop new and improved products or processes should consider making an R&D tax claim.

Myth 3: Our R&D project wasn’t successful so we can’t claim.

Fact: Just because your project wasn’t successful doesn’t mean it wasn’t worthwhile. The project does not have to be successful to claim the credit.  R&D Tax credit is effort based.

Myth 4: Submitting an R&D tax claim will usually lead to an HMRC enquiry.

Fact: It won’t. In our extensive experience, this simply isn’t the case. In fact, HMRC actively encourage relevant companies to claim and continue innovating.

Myth 5: It’s all too good to be true.

Fact: Thousands of companies benefit from the R&D Tax Credit every year.  The Government realises that we have a heritage of innovation and development. R&D Tax Credits are a way of acknowledging and encouraging that advancement.

When you use R&D Tax Claims Limited to handle your claim on your behalf there is absolutely no risk involved. We operate a strict “no win, no fee” policy, so you won’t be asked to make any upfront payment. Our expertise and established relationship with HMRC also allows us to handle all claims in the most efficient manner, and refunds are usually made to our clients within just six weeks of the original application. If you’d like to find out more about how we can help you, get in touch with our Shrewsbury or Warrington office today.

No comments:

Post a Comment