In larger and typically more traditional sectors, such as construction, manufacturing and engineering, some decision makers will have previously decided against claiming the Government’s R&D tax relief incentive for a variety of reasons.
Time to act
However, in the wake of COVID-19, Brexit and the economic downturn, businesses have had to act and adapt to stay afloat. While some have shut down or suspended operations, others have successfully pivoted and transformed their business model through change and innovation.
A positive consequence of such fast-tracked business transformation is the tangible opportunity for businesses to revisit the incentive if they didn’t qualify previously, or secure valuable funding from reactive measures that are eligible for R&D tax relief.
With further pressures and tighter margins on the horizon for UK businesses, conversations about aiding recovery and setting out future plans will be critical to business survival – and it makes sense for R&D to be a part of this conversation.
What to consider
The R&D tax relief incentive could offer generous funding and much-needed support at a time when businesses need it the most – so it’s important to be well-informed when approaching the incentive.
Top tips for claiming R&D tax relief:
- While the R&D tax incentive can help you recoup a significant proportion of an investment into innovation, it doesn’t cover everything. Avoid disappointment by making sure that you understand what qualifies for tax relief, and what doesn’t.
- Keep a record of – or make a good attempt to fully recollect – any research and development activities you’ve undertaken in the last twelve months, as this will make applying for the incentive that much simpler.
- Make sure that you are fully aware of the benefits and added value that R&D tax relief can have for your business. If you’re unsure, speak to a reputable adviser (i.e. someone with years of experience and specialist expertise).
- Don’t be led astray by spurious advisers looking to benefit by spreading misinformation about what COVID projects qualify for R&D tax incentives.
To find out more about R&D tax relief, contact ForrestBrown on 0117 926 9022 or via firstname.lastname@example.org.