R&D Tax Credits – the Myths and Misconceptions
Date: 15th November 2016
Let’s explore why many SMEs, who should be claiming, just aren’t…..
Here are eight common myths and misconceptions
- Claiming is risky and may lead to broader tax investigations.
- HMRC do not want claims to succeed so make it hard to qualify.
- We need to own the IPR in order to claim.
- We are too small to claim.
- We are just subcontractors, so cannot claim.
- We only develop web sites so would not qualify.
- We do not employ any PhDs.
- Programming is not R&D.
These are exactly that, myths and complete misconceptions.
HMRC’s R&D Tax section is highly supportive and is targeted with helping businesses to successfully claim. There are rules and because these can be complex, it is best to seek advice before you walk away from one of the most generous tax rebate schemes available to SME’s.
Fortunately, advice is readily available, is usually free and only costs you a percentage fee once you have successfully received a tax rebate or credit against your Corporation Tax bill. The scheme even pays out when the business is making losses.
Good R&D Tax specialists will work with you and provide the claim documents necessary for your own Accountant to submit. Many Accountants include the submission in their standard annual fee and the process is quick and time efficient. It is just part of the annual accountants and tax computation procedure.
Should you be claiming? A short phone call with a specialist R&D Tax consultant will soon tell you….
Jaime Lumsden, Director