Dealing with R&D tax credits can be a complicated venture. It is essential for you to understand it if you are going to benefit from it. R&D tax credits are a tax break that has been put in place by the UK government. It is paramount to understand that even if the project was not successful the government allows you to claim 33% of the cost.
If you want to qualify for the R&D tax credits then you will need to warrant you take the time to prove that your tech was complex and to do this you will need to submit your financial and technical information. The thing that you should put in mind is that to get the money; then you will need to be able to meet with the HMRC detailed criteria. You will qualify if your project provides any advance to science and technology.
The thing is that having technology which qualifies is not enough. You need to have spent some money on developing it. Some of the things that you should understand is that the money you use needs to be spent the right way if you are to benefit from it. The other vital thing that you need in order to qualify is getting a UK company.The other important thing is that the company needs to have spent cash and not sweat equity.
The money needs to be clear on what it has done. Some of the things that it can do is to pay the staff or the contractors. It could also be used on subcontractors and materials. The other way that you might have spent the cash is through the software license. The other thing that you should understand is that the money needs to have been spent during the last two financial years, The thing is that if this is the situation then you should put in mind that you are legible and you should follow up so that you can get the most of the cash.
The amount that you get will depend on the business that you are doing. Some of the things that you should note is that if you are a large company that has 501 plus employees and makes a turnover of $ 100 million or have a balance sheet of $ 86 million then you should note that you qualify for about 10% back. For those doing small business then you should understand that they qualify to get about 15%-33%. This is what you should note when you are making the claims.If you are in this bracket, then you will end up getting your money back.