Paul Mann, MD at LinkStep R&D Tax Services, presented a fascinating insight into R&D tax at the BASDA Annual Summit in June 2015.
For small to medium sized companies, even if loss-making, an R&D claim has the potential to generate a net cash benefit of over 30% of the qualifying expenditure. This is delivered via a reduction of Corporation Tax liabilities or R&D Tax Credits.
You may have a viable R&D claim if you can answer ‘Yes’ to any of these questions:
- Do you employ any staff with a technical or scientific background?
- Do you develop prototypes or samples?
- Do you undertake or outsource any testing activities?
- Have you aborted development due to overwhelming technical challenges or failures?
- Do you have development that seeks to enhance any of these areas: performance, accuracy, scalability, security, throughput, quality, durability, integration?
- Do you have difficulties developing legacy systems or components to operate in newer environments or with different requirements?
- Are you further developing ‘off-the-shelf’ solutions to meet your own requirements?
Content courtesy of LinkStep R&D Tax Services.
