Research & Development Expenditure Credit (RDEC) was introduced in 2000. It is set out to encourage UK businesses to develop new – or improving existing – products, processes or services. The incentive is a cash payment and/or tax deduction.
Research & Development
Investment in Research & Development might be integrated into a long-term business plan. Alongside our Business Advisory Services at CBHC, our team work with specialist consultants in the area of R&D tax. Their expert advice can help business owners gain both significant reductions in corporation tax liabilities in the future, and potentially receive refunds in respect of tax already paid.
It can be difficult to establish potential areas of your business activities and projects that may have fallen within the definition of R&D. This may include:
- Designing, developing, manufacturing and testing new or improved products.
- Adapting existing technology or materials for a new purpose.
- Redesign to fit purpose.
- Working with new materials, technology or products.
- Developing bespoke software, processes and services to help run the business more efficiently.
- Adapting existing processes due to legislation, environmental or health and safety regulations.
- Adapting or improving processes, systems or products to reduce the carbon footprint of the company.
- Reducing waste sent to landfill and other recycling initiatives.
- Creating intellectual property for the business provided technical or scientific uncertainty was overcome in the process.
The R&D qualifying criteria and costs is much wider than you might think and there could be many activities or projects you have undertaken or are undertaking, which meet this criteria. Our trusted advisors will help identify what R&D you may already have in place, and let you know whether there are adequate grounds to make a claim.
When it comes to making a claim, all costs associated with R&D processes are included. Claims can be substantial enough to wipe out most, if not all of a company’s corporation tax liability.
Get in touch with us if you'd like to make a claim or speak to us about our R&D Tax Credit services.