Businesses advised not to miss out on valuable tax credits

 

Rob Chedzoy

Rob Chedzoy

Milsted Langdon is advising businesses to check whether projects they are working on qualify for valuable tax credits under the research and development (R&D) scheme.

R&D tax credits increase tax relief against taxable profits.

To qualify, a project must seek to achieve an advance in overall knowledge or capability in a field of science or technology.

The relief covers costs such as staff, materials, payments to clinical trials volunteers, software, utilities and subcontracted expenditure.

At present, small and medium-sized businesses can claim 225 per cent relief on qualifying expenditure.

Larger companies can currently claim either 130 per cent tax relief, or, as of 1 April 2013, a 9.1 per cent ‘above the line’ tax credit. In all cases, there is no upper-limit and for companies with an accounting period expiring after 1 April 2012, no minimum claim.

Rob Chedzoy, a tax partner at the firm, comments: “Every business owner wants to save money, and minimising your tax bill by claiming R&D tax credits is one of the most effective ways to do this.

“Many businesses are still failing to take advantage of this opportunity, either because they do not realise they are eligible or because they think the process is too complicated.”

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