The four stages any entrepreneur goes through   

The four stages any entrepreneur goes through   

Running a business is not something easy to do and while some people manage to succeed although they do not have a lot of experience, others may fail even if they are More »

Steps to starting a small business

Steps to starting a small business

If you are interested in setting up your own business, then there are a few important steps to follow in the process. Because the business world is highly competitive, it is more More »

Keeping your social media fans engaged – how to attract new followers

Keeping your social media fans engaged – how to attract new followers

Considering that social media marketing is more popular than ever and can have a very important influence on the success of a company, managers will need to always be careful with their More »

 

Anything you want to know about R and D taxes

Understanding how taxes work can be really difficult for someone who doesn’t know anything about finances and the rules regarding them. Working in the research field will complicate things even more, given the facts that there are research and development tax credits that can be granted when needed. Wondering what these credits are? They are purposed to encourage companies to invest in the field of research and development by reducing their tax fees while they expand their field of work. Here are the main things you should know about these credits:

A short history

Where did these kinds of credits actually appeared? Well, since 2000 in the United Kingdom there was the possibility to apply for such credits for small and medium enterprises. In 2002 R and D tax credits started evolving and large companies could apply for them too. Any company can now profit from the benefits of such credit if being qualified for it. Any eligible research and development activity can be fructified with the help of a tax credit. With time, these credits started to become more and more popular, encouraging new companies to invest in this sector. Nowadays, especially in the United Kingdom, it is a great volume of companies that uses R and D tax credits that makes the macro-economic system remain steady at all times.

How does it work?

It is not a complicated process, although there are a variety of principles that need to be known and understood by the time you apply for such credit. Eligible companies for research and development purposes need to seek for an upgrade in domains like science or technology, must be subjects to scientific uncertainty that needs to be tested and needs to be highly systematised. Claiming a tax credit means assessing the R and D activity, carefully calculating the expenditure of the actions and submitting the figures obtained. Keeping record of every activity for research and development will help you earn later on.

How can you get it?

If you appreciated that your company is eligible for a tax credit, all you have to do is apply for a R and D approval. Once applied, you will be able to choose an appropriate sponsor for your activity, your quality levels will be checked, the authorizations will be set in place and the formal agreements will be discussed. The calculation of such credit is made based on the eligible expenses which include wages, supplies, contract research, basic research payments and everything related to the R and D activities.  There are several methods for calculating this credit: a traditional one, a start-up one and am alternative simplified credit. No matter which one you are opting for, the calculation will be made correctly and accordingly to your needs and budgets.

All in all, when opting for such credit, try contacting a specialist that can get everything sorted out for you. It’s much easier and you will save a lot of time filling in forms and stressing out over it.