• ICAEW
  • KASHFLOW

 

0161 928 3276

 

 

We understand our clients

Taxman wants to help you claim R&D tax relief

Newsletter issue - February 08.

The research and development (R&D) enhanced tax relief for smaller companies is often ignored as business owners feel it is too complicated to make a claim. However, the Taxman is actively encouraging small companies to claim, by providing help and guidance through a number of specialist R&D centres.

Your company could qualify if it spends at least £10,000 per year on qualifying R&D. If the claim is successful it can deduct 150% of the actual qualifying R&D costs from its taxable profits. Where the claim creates a loss for the company, part of that loss can be converted into a payable tax credit.

The catch is the definition of R&D for this tax relief is very strict. The research must directly contribute to achieving an advance in science or technology through the resolution of technological or scientific uncertainty. This means that the R&D work must not only benefit your company, but it must break new ground scientifically, or in a technological context. Achieving a patent for your innovative product goes a long way to proving you have carried out qualifying R&D work.

The deadline for submitting a claim for R&D tax relief is now two years from the end of the accounting period in which the costs were incurred. To gain the enhanced tax relief for R&D costs incurred in the year to 31 March 2007, you must send your claim to the Taxman by 31 March 2009. However, R&D tax relief claims for earlier years are still possible. You can submit R&D tax relief claims for any accounting period ending after 31 March 2002 and up to 31 March 2006, before 31 March 2008. But this doesn't leave you much time to formulate your claim.

We can help you draw up your R&D tax relief claim, but please talk to us as soon as possible.

 

To work Smarter in your Business Contact Beauchamp Charles

Contact Us

"Join our newsletter for hints, tips and tax advice"

 

What our clients say

Dakins Property Services

Great Results, Personable, High Integrity

Choice Events Limited

All at Beauchamp Charles are very helpful, approachable and easy to talk to. They keep me informed with key dates; I can feel totally confident that I won't ever miss any deadlines! Whoever I deal with, always deal with matters professionally and efficiently and if they are unavailable they get back to me promptly.

FT leisure Ltd

I have worked with Beauchamp Charles as our management accountants for over 20 years and have never received anything less than exceptional service. Their approach is both professional and personal. Finances and particularly tax strategies are a minefield for small businesses; Beauchamp Charles have in-depth knowledge of these area, which is comforting. They pay very close attention to our business activities and have provided financial strategies that have helped our company develop.

Fredrick Thomas Electrical and Maintenance

We have used Beauchamp Charles since company formation back in 1998. Beauchamp Charles offers us a one to one service as they are small enough to offer this dedicated service and large enough to do the work and offer best advice. They get to know us as individuals and a business, always giving sound advice. Frederick Thomas Electrical are in a stronger place thanks to the service we get from them.

Barnes Walker Landscapes Limited

We are a small business and had employed the same accountancy firm for many years. Two years ago we took the decision to switch to Beauchamp Charles after several othe local businesses recommended them very highly to us. We have not been disappointed with the service they have provided to us over these last two years.