R & D Tax credit scheme aims to encourage investment in technological Research & Development expenditure by allowing relief through the tax system. The scheme has been around since 2000 but a vast majority of companies are not clear if they even qualify. R & D tax credits enables a company to claim additional (or enhanced as they are called in law) expenses to reduce profits or to increase a loss (in case there is a loss). This would mean a reduction in corporation tax.

 

For small companies HMRC even allows for any losses to be surrendered to claim cash. This could prove extremely beneficial for companies who foresee losses for several years to get cash now rather than waiting for the company to start generating profits to receive the benefit.We have been helping specialist Technology clients with R & D credits and can assist you with planning, calculating and claiming enhanced expenses and tax credits.