10/09/2021
Does Your Company Carry Out R&D?
Creating or improving a new product, process or service requires carrying out efficient research and development which could involve finding solutions for certain problems that may or may not have been done before. Other than your own business, Research and Development projects can be done for clients as well.
The definition of R&D is broad by nature. Whether you are taking a big leap of faith or resolving scientific and technological difficulties, you are executing qualifying activities. This may include creating new products, processes or services, and/or improving them to better accommodate the needs of your customers.
Carrying out this project is not always a sure-win. Sometimes, you are not sure if it is feasible. If you do not know how to achieve the goal, you may be in a position where you are trying to resolve uncertainties, consequently qualifying for R&D tax relief.
When Does R&D Start and When Does it Finish?
In simple words, Research and Development work begins when your objective is to scientifically and technologically improve your project. It ends when the uncertainties have been answered or resolved. Anything beyond these parameters will not be classified under R&D.
Is My Project Qualified for R&D Tax Credits?
For your project to qualify for R&D tax credits, you will need to achieve development in your respective industry or market first - preferably in the field of science or technology. If your project has already achieved development but the details are not for the public to acquire (e.g. confidential information), it can still qualify for R&D.
Keep in mind that R&D does not always guarantee success. However, some projects that are conclusively unsuccessful can still be qualified for R&D - if and only if they sought a solution that was not evident at the outset.
What Makes A Project Not Qualified for R&D Tax Credits?
Most of the time, projects that copy existing products, processes, materials, devices, or services will not be qualified for R&D Tax Credits. Even if it seeks to improve the cosmetic or aesthetic qualities of certain products, materials, devices, processes, and services, it will not make them qualify for R&D. Instead, creating a new and unique output through science and technology renders it the best chance to qualify.
We, at R&D Advisors, are made up of highly qualified chartered tax advisers and sector specialists who all have excelled in our respective fields. As we seek to maintain such distinction, we utilise a constantly evolving process to prepare R&D tax credit claims that meet the standards - the HMRC's high standards. We aim to deliver maximum value to your business. And if you are not certain about your work - whether it qualifies or not; our team of R&D expert advisors will be happy to give you a free audit and claim estimate that you could be eligible for.
Take our free R&D claim assessment quiz to see if you qualify for tax credits today: https://rdadvisors.co.uk/free-assessment
