Research & Development Tax Relief
The R&D tax credit scheme is an HMRC incentive created to inspire and reward limited companies for their innovation and development of their industry. This applies to Hospitality companies too!
R&D Tax Credits
R&D Tax Credits can be a vital source of extra income and if your claim is successful, processed and paid in up to 8 weeks.
Many small businesses in the United Kingdom, generally, are unaware that they are eligible for this funding, which can be claimed against spending on research and development in a wide range of areas. R&D tax credits aren’t just for very high-tech enterprises conducting advanced research. Please do not hesitate to contact us right away for a 15 min discovery call to see we can help you with your R&D Claim.
What costs are eligible for the R&D tax credit?
- Direct staff costs – this is the cost of paying your employees who have worked directly on the R&D project and include costs such as; gross salaries (including wages, overtime and cash bonuses), employer NI contributions, employer pension contributions and certain reimbursed business expenses.
- Subcontractor and Freelancer or Agency Staff costs – this usually means that a portion of your R&D project has been outsourced to another company for an agreed amount, or if you have externally provided agency staff or freelancers. SME Companies can claim up to 65% of their subcontracted R&D costs.
A successful claim can mean your business receives, either a cash payment or a reduction in Corporation Tax. Please consider activities focussed around process improvements, innovation and business progress.