R&D Tax Credits

Many businesses are not aware that they could benefit from a cash refund or reduced tax bill from the government. If you are not already claiming Research and Development (R&D) tax relief, perhaps you should be. You may be surprised as to what is classified as R&D.

Startup Direct has partnered with an accountancy firm who have expertise and resources to help you with your R&D tax credits claims. After an initial free and a one-hour open discussion, we can generally assess within reason the merit of any potential claim or refund. There is no fee if we are not able to save you tax or generate a refund.

There is a lot of terminology around R&D tax relief, but don’t be put off. The key point is that since 1 April 2015:

  • If you are an SME, for every £100,000 spent on R&D, you can receive a £230,000 deduction from your corporate taxable profits potentially triggering a cash refund of up to £26,000 or, if loss-making, gain a cash refund of up to £33,000.
  • If you are a large company, you can trigger a benefit of up to £110,000 in the accounts for every £1,000,000 spent in the company’s accounts under the R&D expenditure credit scheme.

If you can answer “yes” to any of the below points, then you might be able to claim R&D tax relief:

  • Do you believe you have made any advances in science and/or technology?
  • Do you manufacture anything?
  • Have you developed your own software?
  • Do you carry out any design work?
  • Are you using existing technologies in a unique way or combining or interfacing two or more existing technologies in a way they have never previously been combined?
  • Have you developed any software driven processes that improve internal efficiencies (e.g. interfacing, processing speed, real-time processing, platforms etc)?
  • Have you developed any non-software driven internal processes that reduce production times or cost or improve scalability?
  • Have any other companies asked you to undertake design/manufacturing/software development to assist with any part of their projects?
  • Do you subcontract anyone to carry out any design or manufacturing or scientific or technological work for you?
  • Are you a market leader or seeking to become the market leader in your chosen sector?
  • Have you fled any patents?
  • Are you using existing technologies in a unique way?
  • Are you combining two or more existing technologies in a way never previously attempted?
  • Have you developed any new or enhanced existing query languages for databases in an attempt to significantly increase the power or search or manipulation?
  • Do you develop software using cutting edge technology?
  • Are you using new programming languages or frameworks?
  • Have any other companies asked you to undertake software development to assist with any part of their projects?
  • Do you subcontract anyone to carry out any design or manufacturing or scientific or technological work for you?
  • Are you writing APIs for systems? Or creating enhancements to existing APIs?
  • Do you produce new theorems and/or write algorithms?
  • Have you made technological improvements to an existing system?
  • Have you rewritten an existing system to enable it to run on new hardware (e.g. moving software from an AS400 platform to Windows)?
  • Have you created any new programming languages?
  • Have you created a significant extension of an existing programming language?
  • Have you done any development to significantly improve basic operations e.g. faster retrievals from a database?

For more information and to see if you are eligible please email us on mentoring@startupdirect.org with a short description of your business so we can provide you with an initial free assessment.

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