Businesses have golden opportunity for investing Innovation by Research and Development Credit

by Benny Gala DNS Accountants

Research and development tax credit is valuable relief from the side of government to businesses who want spend money in new products and research.

Companies have benefits for manufacturing new products or developing new services. It has cash payment or reduction in corporation tax. R&D tax credit is equal up to 33 percent of the investing cost. Companies can be use R & D credit as alternative option of funding in development.

How R & D Credit Working?

If you are eligible for R & D tax credit; you can claim last two year after the completion of your current year. For example when you will complete your year 2018 you can claim for the year of 2017 and 2016. It will be calculate according to your spend money in 2016 and 2017. Qualifying expenditure is identified and enhanced according relevant rates. It will be depend on your status if you are profitable than it will deduct from profitable tax. It will give you corporation tax reduction if you are profitable otherwise you can claim for cash credit if you are making loss.

Is your Business Eligible for R & D Tax Credit?

Many businesses think that they are not release that they eligible for R & D tax credit and they did not claim for the R & D. It has been existence last 15 years and nearly £2 billion per annum is currently being claimed.

If your company taking risk in innovation and manufacturing something different and new or your company is developing new services than you can qualify for the R & D tax credit. Project must be contains a level of technical and professional. If you are thinking to develop new idea or manufacturing new products you can get research and development tax credit services.

The UK government recognizes that encouraging innovation in vital department to improving productivity and development.