R&D Tax Credits
Frequently Asked Questions
1. How long does the Research and Development claims process take?
From the moment we have our first conversation with you, until the moment the funds hit your bank account, is approximately 4-6 weeks.
3. Does my business qualify for R&D Tax Relief?
Many people think you need to be wearing a white coat working in a laboratory to qualify, this is simply not the case!
If you are overcoming challenges within your field, then it would certainly be worth having a conversation with our team to find out more.
5. How far can we claim back for R&D tax credits?
You are entitled to claim back two retrospective financial years.
7. How do R&D Tax Credits work?
Businesses which spend money developing new processes, services or products or if they are improving existing ones, are eligible to claim R&D Tax Relief.
The scheme allows you the option of either a cash payment or a corporation tax reduction.
Businesses are able to claim back the previous two years retrospectively and each year going forward, the claim is usually submitted around the end of the financial year.
9. What costs qualify for R&D Tax Credits?
Costs which qualify for R&D Tax Credits are:
– Staff salaries, reimbursed expenses, pension contributions and employers NIC
– Materials / Wasted Materials
2. How much will we get back?
The amount you will receive depends on how much you spend on a number of things, such as PAYE salaries, sub-contracting costs, materials and software licences. From your first consultation, we will be able to offer you an accurate calculation on what you should expect to receive back.
4. How do I claim for R&D Tax relief?
We have ensured that our claims process is as efficient as possible, meaning you don’t have to do much at all!
After the initial conversation, we will request a few pieces of financial information so we can make a start on your claim.
6. What are R&D Tax Credits?
R&D Tax Credits were set up by the Government 20+ years ago as an incentive designed to reward businesses within the UK for investing in Research and Development. Ultimately businesses receive a cash injection from HMRC to support their business growth.
8. Is my business eligible for R&D Tax Credits?
To benefit from the scheme you must:
– Be a limited company in the UK
– Have carried out qualifying R&D Activities
– Have spent money on these projects
10. What are the benefits of R&D Tax Relief?
Businesses which qualify receive a cash injection each year from HMRC. The scheme encourages businesses to use the money to put back into the business by hiring more staff, buying new vans, equipment, ultimately encouraging growth.
If we haven’t answered your question or you wish you talk to one of our Consultants please get in touch and we will do our best to help with your query.
Harmoney Consulting Group, a company incorporated under the laws of Scotland, and having its registered office at: 272 Bath Street, Glasgow, G24JR.
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Registered number: SC661102