Why R&D is Important for a Firm?

Date: 17th November 2014

R&D (Research and Development) is why mankind has progressed to such an extent. If a few brave men and women didn’t have the courage to venture into the unknown, we would not have been able to step into the light as a society. R&D can never be underestimated just like an idea. Given the right fuel and encouragement an idea can change the world. This is very apparent with the current generation; innovation is progressing at a rapid phase. A ground-breaking technology is at...
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Cash value of R&D tax credits rises!

Date: 30th October 2014

Before identifying what the value of R&D tax credits might be to your company, it’s worth noting that the UK Government’s R&D tax credits scheme is primarily a corporation tax relief scheme. In some cases, a SME (Small or Medium sized Enterprise) can first use its R&D tax credits to reduce its tax bill to zero and then take the rest as a cash payment. Government statistics published in 2013 indicated that the average claim value for a SME was around ...
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Conditions That Need To Be Met For Claiming R&D Tax Credits

Date: 29th September 2014

R&D can be defined as “a work to resolve scientific or technological uncertainty aimed at achieving advancement in science or technology”. It’s estimated that about 6,500 or more small or medium-sized companies claim tax credits for R&D and approximately 37% of these companies increased their R&D budget as a result. In the case of a company that is making a profit is entitled to claim a more generous relief as a deduction from its overall corporatio...
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R&D Tax Relief: Significance and Getting Expert Help

Date: 22nd September 2014

Companies that are involved in research and development (R&D) can avail a benefit from the R&D tax relief schemes. Claiming relief is based on the category under which an organization comes under, the SME (small or medium-sized enterprise) or larger corporations. In both schemes it is recommended that a business owner consult an expert to get the best out of the tax reliefs. The scheme was launched in a bid to improve R&D in the UK. Innovation is most of th...
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Why R&D Tax Credit Consultancy Charges are so unequal?

Date: 28th August 2014

HMRC released data indicates that tax credit claims for R&D continues to increase. In 2011-12 the number of claims increased by 8.6% with almost £1.2 billion being claimed that year. An increased awareness about the process and the willingness of companies to employ R&D tax relief specialists has played a very important part in this change. Engaging specialists for this job comes at a heavy price, even though it is a common complaint that these charges are unreasonable. Here are...
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Why Do Companies Under-claim R&D Tax Credits

Date: 21st August 2014

Although the number of claims has increased and more expenditure is being included, the HMRC reports that many companies especially SMEs continue to under-claim or fail to claim R&D tax credits. There could be several reasons for this. Some of them include: Claims made by unqualified people: Accountants are indeed qualified to file your tax credits, but to file claims for R&D tax credit your company needs qualified engineers who understand and interpret q...
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Factors That Could Trigger the HMRC to Doubt Your R&D Tax Credit Claim

Date: 14th August 2014

A rough HMRC estimate indicates that we lose around £30 billion every year through tax gaps. Naturally, it makes sense for the revenue and customs department to scrutinize every claim carefully. Offering incorrect or insufficient information only provokes the HMRC to probe further and look for a pattern of tax avoidance.  Here we list out a few factors that you may be intentionally or inadvertently be guilty of whilst claiming credits for R&D. Unclear R&D Tec...
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Overview of Research and Development (R&D) Relief for Corporation Tax

Date: 11th August 2014

The Research and Development (R&D) Relief is a Corporation Tax (CT) relief that can reduce the company’s overall tax bills. If a company is a small or medium size business, you can choose to receive a tax credit. How it began? The R&D tax relief was announced in the year 200 for small and medium business enterprises and a separate scheme for corporations and large business which was introduced in 2002. The scheme was a result of the UK government’s intentio...
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Finding a Research and Development Tax Credits specialist consultancy in the UK

Date: 7th August 2014

It’s a fact that, since the inception of the Research & Development Tax Credit in the UK, many SMEs (Small and medium enterprises) were not sure whether their R&D costs qualify for R&D Tax Credits due to a lack of legislative interpretation and guidance. In such a scenario, it’s imperative for any company to hire an expert consultant who comprehends the guidelines of Research & Development Tax Credit and provides a cost effective technical v...
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Common Myths Surrounding R&D Tax Credits

Date: 5th August 2014

The government has continually pushed businesses to invest on research and development. In fact, the rate of credit that SMEs can claim for R&D has risen from 11% to 14.5%. But despite the government’s best efforts to support science and innovation in the country, Britain managed to spend only 1.72% of its GDP on research and development. This is far below the government’s target to increase R&D spending by 2.5% of its GDP.  A 2013 news report on Forbes mentioned that...
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