What you need to know about claiming the R&D tax credit

What you need to know about claiming the R&D tax credit


Your company has invested a lot in research and development (R&D). Just like other organisations in the UK, you have created new, cutting-edge products that rock. Why? Because you know just how important innovation is to your consumers. People expect nothing but the best and they don’t buy from a company that doesn’t stay ahead of the technology curve. You are happy that you can meet consumers’ demands, but you aren’t doing so well in terms of resources. All that research and development has drained your finances. Being an innovative leader is expensive. Fortunately, the British government comes to the help of businesses that have invested in R&D. They offer research and development tax credits that provide relief for investing in modernisation. You too can claim the R&D tax credit. If you want to find out more, keep on reading. 

Who can claim research and development tax credits

Not just any company can claim this tax incentive. The research and development tax credit addresses businesses that have performed activities meeting the following tests:

  • Elimination of uncertainty – Technical uncertainty refers to any activity regarding the development or improvement of a product or process. You basically have to prove that you have tried to eliminate unknowns concerning the technologies that might materialise or be associated to provide a new solution.
  • Process of trial and error – The activities you realize must include scientific experimentation. More precisely, you have to explore observations and answer questions.
  • Technical character – When attempting to claim the R&D tax credit, you need to show that your activity is technical in nature. What you have to demonstrate is that the process is based on sciences like engineering or science.
  • Qualified purposes – There must be an improved product or process that brings about innovation.

If you have performed such activities, you are eligible for the research and development tax credit.

How to take advantage of the research and development tax credit

You have spent a great deal of money on developing new products and it would be a shame not to take advantage of the tax incentive offered by the UK government. You don’t want your company’s financial position to be a bad one, do you? It doesn’t matter what size your business is or how much money you are bringing in. If you have carried out R&D, you can claim the tax credit.

Very few companies apply for the research and development tax credits because they don’t want to go through the complicated process. If you either don’t want to deal with the HMRC, seek help. There are many companies out there willing to help you with your claim. Enterprises offering R&D tax credit services take care of everything, acting like an intermediary between you and the HMRC. What you can be sure of is that you will get your money in a matter of weeks. Simply put, they make the process as smooth as possible. Avoid going through the hassles of claiming the research and development tax credit. Hire a specialized company.