Welcome to AML Accountancy Solutions, your partner in harnessing the power of Research and Development (R&D) tax incentives. Our specialised R&D services are designed to empower businesses to innovate, maximise tax benefits, and drive growth.
Discover what R&D entails, its importance, the benefits it offers,how our expert accountants can assist you, and how you can embark on a journey of innovation and financial advantage with us.
Research and Development (R&D) refers to the process of creating new products, services, or improving existing ones through innovative solutions. Recognising the significance of R&D is crucial because:
In the UK, companies can claim R&D tax credits as a way of reducing their corporation tax liability or, if they are loss-making, receiving a cash payment from HMRC.
As of the 1 April 2023 New rules have come into effect which can add complication of claiming R&D credits.
For expenditure incurred on or after 1 April 2023, the RDEC rate, for large companies, has increased from 13% to 20%.
However, the additional deduction for SMEs has decrease from 130% to 86%, and the SME credit rate will generally decrease from 14.5% to 10%, unless the SME is deemed a R&D intensive company.
This means if a profitable business which spends £50k on qualifying R&D expenditure, will as of the 1st of April secure total tax relief of up to £23,250, (pre 1 April 2023 £28,750) compared to just £12,500 on other expenditure.
To claim R&D tax credits, a company must meet certain criteria and provide evidence of their qualifying R&D activities.
They must demonstrate that the work they have carried out meets the definition of R&D set out by the government, which involves seeking to achieve scientific or technological advancements in their sector, whether this be improving business efficiency across products and services or an overall improvement to profitability.
They also need to show that they have incurred expenditure on R&D activities and are subject to UK corporation tax.
The types of expenditure that can be claimed for under R&D tax credits include:
Our adept team at AML Accountancy Solutions is dedicated to helping you capitalise on R&D tax incentives. Here's how we can assist you:
Ready to drive innovation and maximise tax benefits? Schedule your consultation with AML Accountancy Solutions today. Our dedicated team is eager to collaborate with you, helping you navigate R&D tax incentives and achieve financial growth through innovation.
Contact us now to embark on a journey towards innovation and financial advantage. Your business's success is our priority, and we're here to support you every step of the way.
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