Tuesday, July 23, 2019
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What You Need To Know About Claiming R&D Tax Credits

You might find that dealing with the R&D tax credits is not something simple. The thing is that if you are going to benefit from it, then it is better for you to understand it. R&D tax credits are a tax break that has been put in place by the UK government. The thing that you should note is that when you make use of the system you will find that you will be able to claim 33% of the R&D cost whether the project was successful or not.

The thing you should note is that when you are looking to get the R&D tax credits then you will need to take the time to prove to the HMRC that your tech was involved and this can be done by submitting financial and technical details. The only way that you can be successful is if the R&D meet with the HMRC detailed criteria. You will qualify if your project provides any advance to science and technology.

The thing is that having technology which qualifies is not enough. It is paramount for you to have spent some cash on developing it. Some of the things to note is that for the HMRC to count you in then the money needs to be spent the right way. The other important thing is that you need to have a UK company.The other point that you should note is that when you are dealing with it, then you need to get a company that will have spent cash and not sweat equity.

The money needs to be clear on what it has done. The thing that you should note is that the money needs to have paid the employees or the contractors who were working on the project. It could also be used on subcontractors and materials. The thing is that the other method you might have used the cash is through the software license. The thing is that the cash needs to have been spent during the last two financial years. Some of the things that you should note is that if this is the case then you should understand that if this is the situation then you should understand that you will be liable and if this is the case then you need to warrant that you have made the most out of your investment.

Some of the things that you should note is that the cash you get will depend on the business that you are doing. The thing that you should understand when dealing with this project and you are a large company with over 500 staff, a turnover of over a hundred million dollars or a balance sheet of over eighty-six million then you will qualify for about 10% back. In case you do small business then you should note that you might qualify for about 15-33%. These are the things to note when you are making the claims.By doing this, then you will end up getting your finances back.

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