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:
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:
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.