Have you heard about the research & development tax credit?
Or, if you have, did you think it won’t apply to you?
For people in the first group it’s a government initiative to encourage investment in innovation and so to grow the economy (it’s been around for nearly 20 years). Essentially for smaller companies (less than £100 million sales!) you can get nearly 50% of your research and / or development spend back as a reduction in corporation tax OR if you are making a loss get HMRC to actually pay you a credit (so essentially paying negative tax), although it’s a slightly smaller amount.
If you are in the second group (or have now moved there as a result of the last paragraph) you might be thinking: Great but what about my company? We don’t have labs and scientists and such like.
Well, the good news is you don’t need to. If you are making improvements to anything or creating anything new or innovative you could qualify.
Most companies who develop products or services will have to innovate, to develop new products or improve old ones, whether to stay ahead of the competition or to keep in line with new rules and regulations or to take advantage of new opportunities or adapt to new markets.
Of course technologies such as software development or engineering or pharmaceuticals can be clear winners, but so can the following:
Food production (eg new tastes, techniques, packaging)
Paints (eg new formulas because of changing rules or costs)
Travel industry (eg online portals)
Printing (eg new inks and ways of applying them)
Construction (eg new mixes or using external materials inside)
Plus energy, clothing and textiles, fire safety, security and many more. And with imported materials being more expensive, are you looking at sourcing elsewhere? Finding out if the new stuff will work qualifies too!
So have a think and see if YOU are doing anything that might count; and then give us a call (or an email)
Meanwhile have a great weekend
Paul
PS Thanks to Steve @ Thrifty Sites for the joke