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What You Need To Know About Claiming R&D Tax Credits
You might find that dealing with the R&D tax credits is not something simple. It is essential for you to understand it if you are going to benefit from it. The thing is that the R&D tax credits are a tax break that the UK government has put in place. It is paramount to understand that even if the project was not successful the government allows you to claim 33% of the cost.
Qualifying for the R&D tax credits means that you have to prove to the HMRC that the tech you use as complicated by submitting financial and technical information. The one thing that you should understand is that when you are looking for this information then you will need to warrant that you have met with the detailed criteria of the HMRC You should note that the only way that you will qualify is if the project you are doing will provide advance is science and technology.
The thing is that having technology which qualifies is not enough. The other thing that you should note is that you have to spend cash in having it developed. For the HMRC to count you in, the money needs to be used in the right way. The other essential thing that you need to qualify is that you should have a UK company.The other important thing is that the company needs to have spent cash and not sweat equity.
There needs to be clarity on what the cash has done. It could be that it has paid the staff or 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 thing is that the cash needs to have been spent during the last two financial years. Some of the things that you should note is that if this is the case then you should understand that if this is the situation then you should understand that you will be liable and if this is the case then you need to warrant that you have made the most out of your investment.
Some of the things that you should note is that the cash you get will depend on the business that you are doing. If you are a large company with over 500 employees and a turnover of over $ 100 million or a balance sheet of $ 86 million then you will get approximately 10% back. In case you do small business then you should note that you might qualify for about 15-33%. This is what you should note when you are making the claims.By doing this, then you will end up getting your finances back.