This tax relief gives companies that qualify for financial help based on a calculation of its corporate tax. It has been structured so both companies that are profitable and those making losses benefit. With regards to companies that are profitable the relief is provided by way of reduced tax liability.
The reduction usually works out as being the equivalent of 25% of the research and development costs. With regards to companies that make a loss, a successful claim will increase the arising loss. This can be held against both profits previously made by the company and those that may be made in the future.
UNDERSTANDING COSTS ELIGIBLE FOR R & D TAX RELIEF
If you are interested in claiming for R&D tax relief, it is important you understand that only certain costs can be included. These costs in brief are:
Each case is different, therefore the tax relief and investigation into the costs for the tax relief will be different.. It is important you should provide the information easily and quickly. Our team can assist you in gathering and collate the information to ensure tax relief on research and development costs are claimed successfully.
For all assistance with Research and Development Tax Relief, contact Accountancy Solutions today.