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13 Facts you didn't know about Research and Development Tax Credits

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Tom Verner

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13 Facts you didn't know about Research and Development Tax Credits

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Research and Development (R&D) Tax Credits are the most generous form of corporation tax relief in the UK but the most under-claimed.

Feel you don’t know enough about R&D Tax Credits? Based on our experience of successfully advising clients, we have developed a simple ‘Did You Know?’ checklist to help give companies a better understanding of how they could benefit from R&D Tax Credit relief.

Did you know?

  • HMRC typically take less than 28 days to process and pay R&D claims.
  • R&D Tax Credits offer immediate cash benefits, reduction in current or future tax liabilities.
  • R&D for this purpose is normally hidden within the daily operating behaviours.
  • A company can review two past accounting periods and claim for projects and associated costs attributed to these.
  • You can claim travel expenses that have been attributed to your projects. Albeit, this needs to be administered in a different way to normal travel and subsistence.
  • R&D Tax Credits is one of the best tax initiatives to stimulate growth and innovation.
  • Most companies, irrespective of size and experience actually significantly underclaim.
  • When R&D Tax Credits are completed by experts, the risk of investigation is minimal.
  • A proportion of consumables may be claimed.
  • Companies can claim for utilities including light, heat, water and electricity.
  • Analysing your staff production in a new way could identify the true time spent on R&D.
  • Directors dividends normally don’t qualify but most forget to claim their pension contributions.
  • There are specialist HMRC departments designated to dealing with R&D Tax Credit claims.

Do you have more questions or think your company could avail of R&D Tax Credit relief? Call one of our experts at the Momentum Group on +44 28 9140 4030

For a downloadable version of our R&D Tax Credits checklist, click here.

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