Research and Development (R&D) is crucial for businesses to stay competitive and innovative. R&D activities involve developing new products, processes, or technologies that enhance the value of a business. However, carrying out R&D activities can be costly, and businesses need to find ways to offset these costs. This is where R&D tax credits come in. Stratus Consultants can help businesses claim R&D tax credits to reduce their tax liabilities and support their innovation activities.

What are R&D Tax Credits?

R&D tax credits are tax incentives offered by the government to businesses that carry out eligible R&D activities. The tax credits provide a way for businesses to reduce their tax liabilities by offsetting the costs of R&D activities. The R&D tax credit scheme is available to companies that are subject to corporation tax in the UK.

Types of R&D Tax Credits

There are two types of R&D tax credits available to businesses in the UK:

SME R&D Tax Credits: These tax credits are available to small and medium-sized enterprises (SMEs) that have fewer than 500 employees and an annual turnover of less than £100 million. SMEs can claim up to 230% of their eligible R&D costs as tax relief.

R&D Expenditure Credit (RDEC): This tax credit is available to larger companies that do not meet the criteria for SME R&D tax credits. Companies can claim up to 13% of their eligible R&D costs as a tax credit.

Eligibility for R&D Tax Credits

To be eligible for R&D tax credits, a business must carry out eligible R&D activities. Eligible activities include:

• Developing new products, processes, or services
• Improving existing products, processes, or services
• Carrying out scientific or technological research
• Developing software or hardware
• Developing new or improved manufacturing processes
• Improving or modifying existing manufacturing processes
• Developing new or improved materials
• Improving or modifying existing materials

How Stratus Consultants Can Help

At Stratus Consultants, we have a team of experts who can help businesses claim R&D tax credits. We offer a comprehensive service that includes:

Identifying Eligible R&D Activities: Our experts can help businesses identify eligible R&D activities and assess the potential tax savings.

Preparing Technical Reports: We can prepare technical reports that document the R&D activities and costs incurred by the business.

Claim Preparation: We can prepare and submit the R&D tax credit claim to HM Revenue & Customs (HMRC) on behalf of the business.

HMRC Liaison: We can liaise with HMRC on behalf of the business and provide support during any HMRC audits.

Benefits of Working with Stratus Consultants

Partnering with Stratus Consultants for R&D tax credit services offers several benefits, including:

• Cost Savings: Our services can help businesses reduce their tax liabilities, providing significant cost savings.
• Increased Cash Flow: R&D tax credits can be claimed as a cash payment or a reduction in corporation tax, providing a cash flow boost for businesses.
• Expertise: Our team of experts has extensive knowledge and experience in R&D tax credits, ensuring that businesses receive the best possible service.
• Time Savings: We take care of the entire R&D tax credit process, allowing businesses to focus on their core activities.

Conclusion

R&D activities are essential for businesses to remain competitive and innovative. However, carrying out R&D activities can be costly. R&D tax credits provide businesses with a way to offset the costs of R&D activities and reduce their tax liabilities. Stratus Consultants can help businesses claim R&D tax credits by identifying eligible R&D activities, preparing technical reports, and submitting claims to HMRC. Contact us.