Top Tax Tips for Owner Managed Businesses
3. R&D tax relief
For small and medium size companies, relief is available for qualifying costs incurred on Research and Development (R&D) at 200%, (increasing to 225% from 1 April 2012).
This means that for every £100 spent on qualifying expenditure the company should receive a deduction for corporation tax purposes of £200.
For loss making companies a tax credit/refund is available to give a cash flow advantage.
When making a claim for R&D tax relief, it is important to ensure that the activities qualify as Research and Development.
This is the subjective area of making an R&D credit claim and our policy is to draft a document as part of our claim which supports the activity as R&D. It may be possible for us to prepare a claim with a contingent element for fees.
