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What You Need To Know About Claiming R&D Tax Credits
The fact is that dealing with the R&D tax credits is not something easy. 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. The thing is that with the system you can reclaim 33% of the cost even if the project failed.
The thing you should note is that when you are looking to get the R&D tax credits then you will need to take the time to prove to the HMRC that your tech was involved and this can be done by submitting financial and technical details. The only way that you can be successful is if the R&D 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. 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 important thing is that you need to have a UK company.The 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. The thing that you should note is that when you are dealing with it then it should be used by subcontractors or materials. The thing is that the other method you might have used 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.
The thing that you should note is that the amount of money that you will get from the venture will mainly 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. For small organization they will get between 15%-33%. These are the things to note when you are making the claims.By doing this, then you will end up getting your finances back.