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BIGGER, BETTER, FASTER: R&D YOUR WAY TO AN INNOVATIVE MANUFACTURING PROCESS
The manufacturing industry provides ample opportunity for research and development (otherwise known as R&D). And, while…
Research and development (R&D) tax credits are a government tax relief scheme that reward innovative UK companies. They provide a source of cash that a business can use towards developing new products and processes or enhancing existing ones.
On average, you can claim 33p of every £1 spent on innovation. In 2016-2017 alone, the government paid out a massive £3.5 billion as R&D tax credits. That’s a large pool of money that your business may be missing out on!
What does R&D mean for my business?
The R&D tax credit scheme means that a portion of the money you invest in ‘innovation’ can be claimed back. Innovation refers to any company that invests in new processes and products, or enhancing existing ones.
You don’t need to be wearing a laboratory coat to claim for R&D – it’s a scheme that can benefit any business, from small enterprises through to national corporations.
To get paid, you’ll need to submit a R&D tax credit claim, where you’ll either receive a cash payment and/or a Corporation Tax reduction.
To claim R&D tax credits, your business needs to:
What counts as R&D?
To submit a claim you have to identify what constitutes R&D in your business. Fortunately, there’s a wide scope for R&D across all sectors of businesses. When you claim for the first time, you can typically claim for your last two completed accounting periods – which essentially means you can often have cash waiting you may not have ever considered.
How to claim for R&D
That is where we step in. If you are typing what are R&D tax credits into Google, chances are you may need assistance understanding exactly what qualifies as R&D and how to submit your claim. At Lumo, we are a straightforward R&D tax company that deals in one thing and one thing only – helping businesses like your claim R&D tax credits.
We know the language of the taxman, we know what makes a successful claim and what doesn’t, so let us do all the legwork for you. The government has created R&D tax credits to support innovative businesses, but very few submit a claim and get money back into their business. Make sure you do.
What activities are eligible for R&D tax savings?
During the R&D tax claim process, we will analyse what has gone into your R&D process to work out how much money you can claim. This includes:
With so many eligible sectors and criteria, your business could be missing out on thousands of pounds. Try our R&D tax calculator to see how much your R&D tax claim could be worth…
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