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Tips for Research and Development Tax Credits Claims




Research and Development R&D tax credit claim is open for small to medium (SME) to large companies, the companies should have some tips for maximizing the claim and also to avoid scrutiny of the relevant body. The tips help the company to claim a certain tax credit amount of the tax percentage, most small size companies who are eligible for the tax credit mostly don’t know how to take advantage of R&D. This is because of the lack of vital information that can lead to the claim a part of the credit tax. The article will cover the tips you should know about your R&D tax relief claim.


The company size matters a lot, you should be aware of how big your company is before undertaking your claim. The tax credit is classified into two categories, the small medium enterprises and large enterprises, the small medium enterprises are eligible for the tax credit which is higher in percentage than the large enterprises. The governing government body identifies that a company with more than 500 hundred staff as a large enterprise, the turnover of a company that runs into more than a hundred million is also classified as a large enterprise.


The small medium enterprise should not be linked to the larger enterprise, if your company is linked to a mother enterprise then it cannot be eligible for the research and development tax credit claim. The company is considered linked if the company voting privileges are owned by another organization. The linked company is also the one that the management can be appointed or removed from the board of management by the linked organization. Make sure you have all this information before requesting for research and development tax credit claim. For further info, check this link https://granttree.co.uk/r-d-tax-credits-guide/


Reconcile you’re your accounts, make sure that your accounts are in order. The finance department should go through their profit and loss account to ascertain that the finances are in order, you should also go through balance sheet to make sure all assets and liability are tallying, this is because the regulating government body is very cautious in matter pertaining finances of the company when they want to issues the research and development tax credit claim. If at all there is any misleading information in the accounting books of the company, it raises a red flag to the regulatory body, and this makes the regulatory body to take more time evaluating your company if it qualifies for the research and development tax credit claim.


Read also this related post:

https://www.huffpost.com/entry/tax-deductions-2017_n_5a860227e4b05c2bcac91280

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