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Could You Be Claiming R&D Tax Credits?

Don’t Be Put Off By HMRC Guidance!
The HMRC guidance on R&D claims sounds pretty ominous and most people who read this (myself included) will conclude that they probably don’t meet the criteria to make a tax credit claim.

But in fact you might well be eligible for a claim!

I’ve been speaking with ForrestBrown, Chartered Tax Advisors who specialise exclusively in R&D tax credit claims, more than half of which are related to software development.
Who qualifies for an R&D claim?

Applications for claims can be made by trading Limited Companies who are subject to UK Corporation Tax.

To qualify for an R&D claim you must be seeking to make an advance in a field of science or technology.
What is considered an ‘advance’?

Examples of activities which could come within this scope are:

  • development of algorithms
  • middleware and software connectors
  • bespoke mobile and web based apps
  • bespoke software tools and plugins.
  • As well as many others!


What is the benefit of making a claim?

You could receive a reduction in your corporation tax liability of up to 25p for every £1 spent on R&D activities for a profit making small company, with loss making companies also able to make claims for cash credits instead of carrying forward or back losses.


What expenses are included in a claim?

The areas of expenditure you can claim relief on are:

  • staff costs
  • subcontractor costs
  • consumable items related to or used by the R&D process


Is there a time limit to make a claim?


Claims can be made against expenditure in the previous two completed financial years. So if you are approaching a year end and think you could qualify now is the time to act!


Where can I get more information or advice on this?

If you think you might have done or be doing something which could qualify, or have any queries surrounding R&D claims you can contact Mark Smout, Business Development Manager at ForrestBrown via email or on 0117 9269022.

There are no costs or charges for advice. Furthermore ForrestBrown only charge fees for successful claims so you won’t pay anything until a claim has been approved by HMRC.

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