R&D isn’t restrained to companies using test tubes!

 Your company may have elements of R&D and you could be claiming R&D tax credit…

The Government has recently made further changes to the R&D tax relief schemes, and further changes are set to take effect from 1 April 2012. Companies which qualify as an SME (companies with less than 500 employees) can now claim an enhanced tax deduction of 100%.

Changes to take effect from 1 April 2012

  •       The enhanced tax deduction for SMEs will increase to 125%.
  •       The maximum tax free cash receipt for SMEs will be 25p for each £1 of R&D expenditure incurred.
  •       The tax free cash receipt will no longer be restricted by the company’s PAYE/NIC liabilities.
  •       The minimum spend requirement of £10,000 is to be abolished.
  •       Potentially greater relief for subcontractors undertaking routine work.

This is in addition to other recent developments, which has made the relief more attractive, including:

  •       the change in HMRC’s stance on production activities and support functions
  •       the IP condition being removed under the SME scheme
  •       the doubling of the SME limits

The R&D tax credit system is to be simplified and made more effective. The credits will be extended so that they cover the costs of more contract workers. To make a claim to find out what projects will qualify for the benefits from this new tax system, known as Qualifying Indirect Activities, Bevan and Buckland can help you today!

Remember- this relief applies to all industries and sectors, not just those in white coats!Jeannette McLellan Tax Partner at Bevan and Buckland

 

 

Why not call me today on 01792 410101 or email: jeannette.mclellan@bevanbuckland.co.uk to see if I can help you make a claim. 

 

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