By and large, this post covers as much as can be on the innovation, research and development grants. Learn of the R&D tax credits.
If at all you are established as a corporation, then you need to know of the fact that there are the R&D tax credits are essentially corporation tax relief programs that help lower your corporation or business’ tax bill. For the small and medium size businesses, they have the alternative of going for the tax credits instead which would often come in the form of a cash sum that is paid by the HM Revenue and Customs, HMRC. In order for you to qualify for the R&D tax credits, there are some basic qualifications that one should have met. One of these would be such as the fact that the firm you run should be one that is liable for the payment of corporation tax. The other qualifying aspect for these would be such as the fact that your project should be one that qualifies for relief.
The next question would be what it is that actually qualifies, as an R&D project, for tax purposes. Essentially for your project to qualify for these tax credits, they ought to have at the very least met and satisfied the somewhat detailed HMRC criteria. A project would generally qualify for the tax credits if they happen to provide an advance in science and technology. This project should be one that is actually related to what your business does or intends to do when established, for the startups. And looking at the SME claims for these tax credits, the small and medium size businesses that intend to claim them should be such that actually will or must own intellectual property that arises out of the project.
As for who qualifies, these research and development tax credits can actually be claimed by both the SMEs and the larger companies. The only thing that must be is that your firm must be liable to the payment of corporation tax.
In as much as the qualification for the credits may sound so simple, the reality is that there are lots of strict rules that will count for what qualifies as expenditure from a taxation perspective. Therefore you see the fact that it wouldn’t be so advisable for you to assume that all items of your R&D expenditure would be qualifying for R&D tax credits. You would as such be advised to check with a HMRC R&D Tax expert or check the R&D tax relief rules and guidance on how to apply here.
Generally speaking, R&D tax credits can be quite confusing and really complicated for the untrained and for this reason, it would pay for you to think of getting in touch with the pros.