Following Philip Hammond’s Autumn Statement yesterday, GGTC are looking forward to exciting times in research and development (R&D) over the next few years. The 2016 Autumn Statement focused on ‘Investing today for the economy of the future.’
Topics: R&D Tax Credits
The United Kingdom (UK) is experiencing rampant manufacturing growth. Recent data shows the sector's growth is the best in two years. Growth spiked especially sharply this past September, reaching a rate that has not been seen since June of 2014. The Bank of England is inclined to keep interest rates stable in the short-term thanks to the strong September numbers.
Because research and development activities significantly contribute to the intellectual and economic advancement of the country, programs have been developed to provide relief to small and medium enterprises participating in these activities.
If you have a company that does a lot of research and development, you will want to look into the R&D tax claims you can make. In some cases, you can get reimbursement for up to 33% of your development costs.
As your fiscal year end tax return deadline approaches; knowing what you can claim, how much you might get back, and the protocols you have to work within can be extremely important.
There are some chief differences between business grants and research and development tax credits. Business grants can be either public or private grants, or subsidies recognised by the European Commission. These grants are given to the company with the express purpose of funding a project or research while R&D tax claims are made after the project has commenced and tax filing time has come.
When assessing research and development projects, knowing which ones qualify for R&D tax credits can help you plan your budget and strategise for certain projects. When spending money on these types of projects, it is important to understand how these credits are calculated, and what it could potentially mean for your business. Companies can currently claim up to 32% of their expenditures through R&D tax claims.