R&D tax credits are a government incentive that are perfect for tech companies. These help the tech business that is looking to innovate and solve problems day after day. But not enough tech companies know how to access these valuable incentives. Let’s take a look at what makes a tech company ideal for an R&D tax claim.
What does the old song say? It ain’t what you do – it’s the way that you do it? That happens every day in the tech sector. Solutions to problems don’t always follow the same lines to come up with the same answers. Let’s take a minute to think about that. Just because a database does the same basic function of collecting data and storing it in a logical manner. But databases come in all shapes and sizes. The particular problems that a bespoke database solve come with their own headaches, snags and uncertainties.
And it is the same with other tech problems. Solving a complex issue for one client might be completely different to solving a similar issue for another client. And that is what makes the tech business so exciting and dynamic. New ideas happen all the time. Money is spent on developing the solutions to old problems. These are just right for an R&D tax claim.
What Is an R&D Tax Claim
Greta question! An R&D tax claim is the submission you can make to the HMRC for 33p in every pound of your research and development expenditure. Research and development sounds like a fancy concept that only involves massive businesses or universities, but there is R&D in most companies we speak to. Tech companies are absolutely perfect candidates for an R&D tax claim because they spend their day coming up with new solutions to old problems.
Quite simply, when it comes to an R&D tax claim -
Having a successful R&D tax claim is not always about what you have done, but how you have done it.
So, let’s take a look at a few of the facts that go with an R&D tax claim –
R&D Tax Claim – The Facts
An R&D tax claim is something administered by the HMRC on behalf of the government. It is designed to help the businesses of the UK to take risks and innovate.
There have been billions of pounds paid out to SME’s in the UK, with some smart businesses coming back year after year to make fresh claims.
The tech sector is one that the UK government has identified with R&D tax credits.
It can take as little as 4 to 6 weeks for the money to come back into the business – wither in the form of a reduction in the next Corporation Tax bill or cash in the bank.
The UK government has backed R&D tax credits until at least 2021.
You can make a claim for the last two account reporting years as well as the current one.
So, with all of this in mind, you probably want to know a little more. There are a couple of ways that people submit an R&D tax claim. Firstly, you can do all of the research yourself, become an expert in R&D tax and submit your own report. Or you can look for some help…
Who Can Help With an R&D Tax Claim?
Lumo is an expert in helping tech companies from across the UK to find and submit the R&D tax claim in their business. We have helped scores of tech companies, many of whom didn’t even realise they had an R&D tax claim there. This is a really exciting part of our business – helping people claim tens of thousands of pounds or more from the HMRC.
Here are a few reasons to choose Lumo –
- We have a 100% success rate with the tax man with every R&D tax claim
- You want someone to talk tech as well as they talk tax
- The initial chat is free and without obligation
- We maximise every claim
- We are always here at the end of the phone
- All we do is R&D tax – we are the expert
If you have any questions at all then get in touch with our expert team and we will guide you through the maze.