Are Traditional Sectors Missing Out On R&D Tax Credits?
Many traditional sectors such as manufacturing, construction, waste management and civil engineering may be eligible for R&D tax credits. The key is to be able to demonstrate your focus on constantly improving products, modifying processes or being able to offer a service that presents an advancement in your industry.
Research and development (R&D) has become a vital aspect for many companies over recent years, by enabling businesses to be rewarded for their investment in innovation; and re-invest for future projects. This not only opens up the opportunity to increase the efficiency of services, but also grow small businesses into recognised organisations.
What Are R&D Tax Credits?
R&D tax credits are special credits that can be claimed as a corporation tax reduction or a credit. In other words, if a company has undertaken qualifying expenses in relation to scientific research and experimental development activities, they may apply these expenses to reduce their tax liability. This can be huge support for businesses of all sizes looking to grow their organisation and find funding for various aspects of projects. Costs that can be claimed for R&D include trials and prototypes, software, staff costs and consumables.
Traditional Sectors Eligible For R&D Tax Credits
Over the past few decades, attitudes towards traditional sectors such as manufacturing and construction have shifted significantly. Nowadays, companies of all shapes and sizes view themselves as being at the forefront of innovation, working directly on projects to make significant advancements in their respective industries. This type of activity is acknowledged by HMRC, which has introduced the R&D tax credit initiative in order to incentivise those businesses undertaking innovative projects.
What Are The Benefits Of R&D Tax Credits?
There are a range of benefits that come with receiving your claim. R&D can give businesses a huge push to expand their operations and grow a larger client base. Receiving this funding to help complete projects enables you to not only offer something new for your industry, but also advance your services whether that be through efficiency or sustainability.
As many qualifying R&D activities involve creating processes or products that are more environmentally-friendly, the scheme has a great input in driving sustainability across sectors. This has the ability to alter the way industries are working and have the UK lead in innovative workplaces.
There is also no minimum claim requirement, meaning any sized businesses can receive a claim and be encouraged to invest in new projects. Businesses making a loss can also benefit from the scheme and receive help to keep growing their organisation.
How Can I Claim R&D Tax Credits For My Business?
The R&D scheme is an integral part of the government’s commitment to creating an environment in which small firms can grow and succeed. Whilst an increased number of businesses are participating in research and development activities than ever before, many are wondering how they can receive a claim to help offset R&D costs.
Throughout the UK there are various R&D tax credit specialists that can help assist you with your claim and receive support from the government. Many companies are even unaware that they are or have completed qualifying activities for the scheme, so it is important to find out with a specialist team to ensure you’re not missing out on a deserved tax break.