Some Things that You Must Know Regarding R&D Tax Credit
You must understand that the R&D tax credits can definitely be confusing. For the past decade, there were new laws which have come into effect every year and also there are those businesses which are not so sure on the benefits that they could get from the government.
Nearly any money, resources or time that is spent with that idea of improving and advancing such products or processes of a company can actually be considered research and development. Through this, almost any company out there which is creating anything can be eligible for such R&D tax credits. This can be from improving that existing software to testing those ideas and to manufacturing something futuristic like that flying car, any kind of research and development expenses may count to the tax credit. In the UK, any company regardless of size that is spending money on the research and development may qualify for such tax credits.
The amount of such tax credits which you may get would have to depend on the size of the business that you have and also where the operations are based. The US and also the UK come with varying policies in providing R&D-based tax relief but the qualifications of getting such tax credits are the same. Well, the smaller the company and also the lesser revenue that they are getting, the bigger percentage of such R&D costs they can have with their tax credits.
To be recognized as a small or a medium business in the UK, the business should have less than 500 people and must have a turn over of less than £100 million or should have such gross assets of not above £86 million. Such businesses can get that significant advantage from the recent tax credit legislation. When the SMB is lucrative, then up to 26 percent of the R&D costs can be subject to such tax credit.
On the other hand, in order to qualify as a large business in the UK, the organization should have over 500 people or a turnover of over £100 million and the gross assets must be over £86 million. Tax relief provided is at 11 percent of that qualifying research and development expenditure. This may just be one third of the maximum rate for the SMB but the total credit that one may claim doesn’t have a ceiling.
For you to be able to take advantage of such R&D tax credit, then it is quite important that you really work with the R&D associates so that you will be properly assisted and for you to really get the most of out of it. Just go online and talk to them for you to obtain more information.