R&D tax credits have been seriously underrated, and that means countless business owners are missing out on benefits that could be making their businesses flow a lot more smoothly. No matter what industry sector you are in, R and D tax relief can help. Here are five things they can offer your business that will make them worth the effort.
- Making research and development even more valuable
Research and development is the cornerstone of any business. When things are progressing well, R&D can keep you at the top of your game—and your market—enabling you to work on products and services that will keep you running well ahead of your competition. When the economy is down, R&D can still help your business expand, refocus, and diversify to different areas that will help strengthen your business, carry it through the slow economy, and push it ahead when things turn around again. These are valuable investments for your business, but they are valuable investments for the economy, too, and that’s why the government is offering incentives like the R and D tax credits.
R&D tax relief is given to companies that invest in research and development, either as cash or applied against the business’s corporate taxes, in order to bring more investments into the country. This will create a hot spot of foreign and local investors, which will create positive revenue for the economy.
- All company sizes are eligible—even SMEs.
In the UK, even small to medium-sized companies, or SMEs, can receive R&D tax relief. In fact, some can receive more than £46,000, all of which can be reinvested back into the business. The R&D tax relief program was originally designed for SMEs. Following a growing success rate, the program expanded, and now there is a program in effect to offer the same benefits to larger companies and corporations, too.
- You can gain significant savings
You may not think R&D tax relief could be worth the effort, but it offers businesses of all sizes significant savings that can be reinvested back into the business. Research and development makes businesses more competitive, and that makes them attractive to investors—something the government definitely supports. According to the HMRC, you can be eligible to receive up to 33.35% of the money your business spends on research and development back in cash repayment through R&D tax relief.
- It isn’t just for the IT crowd.
Research and Development isn’t just for software or IT products. All industry sectors use and function through varying forms of technology that could be developed to improve efficiency. This includes such fields as medicine, science, manufacturing, engineering, gaming, and even architecture. Any business that uses technology can benefit from researching and developing how to make it more efficient, more advanced, and more applicable to that business’s needs. R&D tax relief can help.
- It isn’t just for existing businesses, either.
Your business doesn’t have to be established to be eligible. R&D tax relief is even available to help start-ups. New businesses are crucial to the stability, growth, and development of the economy, too, and providing R&D tax relief right from the start can give that new business the extra push it needs to really take off with a competitive edge in the market.
If you are interested in learning more about R&D tax relief and how it can help you, contact us at Swanson Reed today.