Tag Archive for R&D Tax Credits

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Cash in on tax credits – how to claim for R&D

by Martin Sharkey • August 9, 2021 • 0 Comments

By Martin Sharkey on Small Business – Advice and Ideas for UK Small Businesses and SMEs

What is an R&D credit?

Research and development (R&D) tax credits are a government incentive designed to reward UK companies for investing in innovation. They are a valuable source of cash for business to invest in accelerating their R&D, hiring new talent, and ultimately transform your business. The government benefits from increased productivity which impacts the economy and can effect positive change on a global scale. The businesses over the last 20 years have claimed approximately £33bn.

Businesses that spend money developing new products, processes, or services, or enhancing existing processes are eligible for R&D tax relief. If you are spending money on innovation, you can make an R&D tax credit claim to receive either a cash payment or corporation tax reduction. The scope of qualifying R&D is huge – in fact, it exists in every single sector. If you are making a claim for the first time, you can claim R&D tax relief for your previous two completed accounting periods.

What qualifies for R&D tax credits?

From agriculture to construction to fintech, all sectors that have the scope for research and development are eligible to claim tax credits.

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7 tax myths for small business owner/managers exploded

by Stuart Clark • March 23, 2021 • 0 Comments

Originally written by Stuart Clark on Small Business
As we head towards a new tax year, it always surprises me how many tax myths small business owners believe, when knowing the truth could actually put more money in your pocket.
Did you know for example that (depending on your circumstances) you could potentially extract over £25,000 tax free from your company (in fact better than tax free as the company can get corporation tax relief so the cost is less than £21,500).
This often means speaking with professionals (your accountant and/or IFA) but here are some quick small business tax myths and tips:
#1 – There is no difference between taking salary and a dividend
Some while ago I did a video that demonstrated increased cash in hand for the business owner of almost £6,000 on profits of £50,000 (based on 2019/20 tax rates). What would an extra £500 a month allow you to do?
#2 – I can just take money out the company when I want, and the accountant will sort my dividends out when I do my year end accounts
This could be illegal and open the company up to PAYE liabilities. Backdating dividends is illegal. It is vital that tax planning is done

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7 tax myths for small business owner/managers exploded

by Stuart Clark • March 22, 2021 • 0 Comments

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Small businesses applaud Conservative business reform pledges

by Timothy Adler • December 23, 2019 • 0 Comments

Originally written by Timothy Adler on Small Business
Business owners have given the incoming Government’s plans to invest in infrastructure and reform fiscal incentives a thumbs-up, according to two new surveys.
Both surveys, one from the Federation of Small Businesses and the other the Institute of Directors, were done post-election, when the Conservatives won a landslide majority.
Since then, Prime Minister Boris Johnson has claimed to hit the ground running, keeping the lights in Whitehall for the first 100 days of his administration.
>See also: General Election results leave ‘unanswered questions’ around IR35
Seven out of 10 small businesses say that the new Government’s pledge to invest £5bn to guarantee gibabit broadband would have a moderately positive (35 per cent) or very positive (34 per cent) impact. For firms based in rural areas, the figure rises to 72 per cent.
And the pledge to uprate the Employment Allowance – a discount on national insurance bills available to small employers – from £3,000 to £4,000 is also popular, with two thirds (65 per cent) seeing this as a positive step.
Nearly two thirds (64 per cent) of small businesses believe Conservative business reform pledges to overhaul business rates and extend the existing discount for hurting retailers will be

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Why small businesses are missing out on millions in R&D tax credit relief

by Mark Tighe • May 7, 2019 • 0 Comments

Originally written by Mark Tighe on Small Business
Businesses grow by increasing sales. The more and the faster you sell, the quicker you will grow, conventional wisdom tells us. However, there are ways to accelerate or boost business growth without the constant need for new sales or new customers, and these rest largely on one key ingredient: innovation.
First, we should define this overused term.

Innovation does not refer only to new products or ideas but can apply to new ways of doing things, such as altering business models to better suit the needs of customers and staff or adapting processes to improve the end product or service.
All these things could, of course, help you sell more. But such innovations usually require significant time and financial investment before they become commercially viable — and not all “innovations” will prove to be successful.
But even failed innovations can bring rewards that can benefit your bottom line, providing extra capital that can be reinvested to fuel further business development.
It does this through two main vehicles — research and development (R&D) tax credits and Patent Box tax credits.
These two forms of government tax relief are designed to reward and encourage greater innovation across the UK business sector

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Growth hack: Tap Into R&D tax credits

by Partner Content • February 12, 2019 • 0 Comments

SMEs businesses and startups across the country are missing out on a secret weapon that can broaden the base of resources to fuel growth. HMRC’s tax relief for research and development expenses, also known as the R&D tax credits, is an effort to boost business innovation and intellectual property across the country. The tax relief
The post Growth hack: Tap Into R&D tax credits appeared first on Small Business.

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Boosting innovation in small businesses with R&D tax credits

by Ben Lobel • December 6, 2017 • 0 Comments

Innovation in small businesses is an expensive necessity. In order to be at the forefront of their industry and stay ahead of the competition, businesses need to constantly be developing and creating new technologies. However, creating these new technologies is an expensive and often risky affair. Small and medium-sized enterprises (SMEs) often lack the manpower
The post Boosting innovation in small businesses with R&D tax credits appeared first on Small Business.

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R&D tax credits: A boost for small businesses

by Ben Lobel • September 14, 2016 • 0 Comments

A survey of 247 UK business leaders by R&D tax credit consultancy ForrestBrown assesses companies’ appetite for innovation, and barriers affecting decision making. Of those that had claimed, 40 per cent directly increased R&D activity as a result, 60 per cent sustained R&D activity, 62 per cent hired new staff and 24 per cent reinvested the funds into new manufacturing processes,
The post R&D tax credits: A boost for small businesses appeared first on Small Business.