Research and Development (r&d) Tax Advice Could Save Your Business a Fortune



Posted: Wednesday, February 08, 2012

by Liz Fletcher
University of Southampton

Businesses that make money through technological innovation are expected to be queuing around the block for R&D tax advice when the rules change in April 2012.

From April 1st firms that are liable to corporation tax will be entitled to claim either tax credits or a tax relief of 225% of expenditure on the research and development they undertake. Small firms will be eligible to benefit from the R&D tax credit, whilst larger firms will get R&D tax relief.

In addition, the Chancellor of the Exchequer has scrapped the qualifying threshold of £10,000 for R&D tax credits and relief. There is no upper limit.

Many financial analysts have interpreted the step as a bold move by George Osborne to encourage more innovation to help kick start the British economy, which has barely grown during his tenure at the treasury.

But what R&D tax advice, if any, is available right now for free?

The Inland Revenue has offered its own R&D tax advice on its web site by outlining the factors that may assist any application for this type of tax credit or relief.

These are: What were the scientific or technological uncertainties involved in the project? What is the scientific or technological advance? Why was the knowledge being sought not readily deducible by a competent professional? How and when were the uncertainties actually overcome?

Peter Lashmar, who manages an accountancy firm in Hampshire, which gives R&D tax advice, said: “It is important to get sound R&D tax advice because, as we all know, HMRC collects tax ruthlessly.

“Any claim must tick all the right boxes to qualify for the credits or relief. An independent accounting professional can help firms meet the strict tests that will need to be passed.” He added.

It is easy to find out more about R&D tax relief  by contacting Lashmars accountants: www.lashmars.co.uk
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