R&D tax credits are very valuable to companies. The good news is that this is something that the UK government is keen to invest in to encourage innovation to flourish in the UK. However, it is important to remember that it is not a give-away and that valid claims need to be prepared by companies, alongside their knowledgeable professional tax advisors.
We have outlined below some key points of learning based on our experience and recent court cases, for making an R&D claim.
An SME that carries out and funds its own R&D projects and owns its IP can qualify for the SME scheme but if that company is subcontractor for someone else it does not own the IP so would not qualify for the more beneficial SME scheme.
These points are examples of the sorts of issues that we, as specialist R&D advisors, regularly address with our clients. If you have any queries or want to chat about whether your R&D projects qualify please contact Stuart Weekes or Andrew Hawley.