In a continued effort to turn the tide of UK technology and manufacturing leaving for overseas shores, the Chancellor’s most recent budget increased the Research and Development enhanced tax allowance from 200% to 225% of qualifying expenditure, and dispensed with the £10,000 minimum spend criteria.
Qualifying research and development activities provide the opportunity to make significant tax savings and tax repayments, vital at a time when preserving cash is key.
Qualifying research and development spend, with effect from1 April 2012, of only £10,000 has the potential to generate tax savings of up to £5,625.
Contrary to popular belief, your business does need not to have staff wearing white coats in order to be considered as carrying on a qualifying Research and Development activity. Are you innovating new manufacturing processes or solving technical and engineering problems or developing techniques for improved energy conductivity? All may be research and development.
With a two year time frame only in which to make a research and development claim, directors should not delay in considering whether the activities their business deploys to ensure they remain at the forefront of their industries will qualify for the enhanced claims.
Our tax experts at Pierce are able to demystify the tax legislation associated with research and development, and take your claim from concept through to approval. We are also able to advise you on developing internal systems for reporting research and development going forward to make your claim even simpler.