If your company is involved in research & development of a product or piece of sotware, then you could claim some valuable cash back for money you have already spent. The scheme has been around for more than 15 years now, however many small companies still don’t have any idea of whether they qualify for such a claim and hence might be missing out.
Under the Small and Medium enterprise scheme, if you are a profitable company, then it could be worth up to 24.7% in extra tax reduction and if you are a loss making company it could be up to 33.35% cash back.
How can you establish if you have been involoved in R&D?
Some of the indications might be:
In the last 2 to 3 years:
- Existing product being improved significantly.
- Performed beskpoe design or engineering services for third parties.
- Improvement to your production process or an attempt to do so.
- Spent considerable time on a prototype or something that wasn’t successful.
- Created a unique piece of software for yourself or a third party business.