How to ace R&D tax relief for your business

If you run an innovative business and are considering R&D tax relief, now is a great time to claim. Providing you qualify for them, read on to learn how to claim tax credits and succeed.

The number of R&D tax credit claims is increasing. Between 2016 and 2017, businesses claimed an impressive £3.5bn, according to statistics from HMRC. This money stimulated further R&D investment – worth £8.2bn. While SMEs are certainly utilising this relief, most make only small claims, with 75% claiming less than £50,000.

R&D reliefs exist to support businesses working on innovative projects that push the boundaries of particular technological or scientific areas. Companies in a wide range of industries can claim for them, even on unsuccessful projects. Government guidance R&D reliefs will clarify whether you can claim for them.

The reliefs are well worth considering for profitable and loss-making SMEs alike. Profitable SMEs can use them to reduce tax liabilities by 25% of their qualifying costs. Similarly, loss-making SMEs can claim a tax credit cash repayment of up to 33% of their qualifying costs.

SMEs that receive R&D funding can even claim a net tax credit repayment, worth 10% of qualifying costs.

How Prosper can help

Prosper² is keen to ensure its members maximise their R&D tax entitlements. We have therefore introduced a service for members to determine whether their businesses are eligible to claim under R&D tax criteria.

You can find the Research & Development Tax Credits Eligibility Assessment in the Reports section of the Service Hub. Click here to find out more.

The full version of this article was originally published on Business Advice. Read the original article here.