James Cornthwaite on Research and Development Tax Relief.
Partner James Cornthwaite advises, “Where a small or medium sized company completes qualifying research and development (“R&D”) then it is possible to claim additional tax relief on eligible R&D costs.
“If a company is loss making, then it may be possible to swap the R&D losses for a cash payment from HM Revenue & Customs.
“The most common eligible costs include salaries, pension contributions and Employers National Insurance for those carrying out R&D, consumables used up in the R&D, a proportion of utility costs, software used in the R&D process and any subcontracted R&D.
“Qualifying R&D typically takes place where a company is trying to achieve an advance in science or technology and there is more than just routine uncertainty.
“Many companies incorrectly assume they are not carrying out qualifying R&D, and so we would always recommend that you discuss this with us so that we can check if a claim is possible.
“Where an R&D claim can be made the benefits can be considerable.”
If you would like to discuss a potential claim for R&D, please call our Lancaster office on 01524 67111 and we will arrange a suitable time for you to pop in and chat to a member of our specialist team.
Author: James Cornthwaite FCA CTA
A former pupil at St Aidan’s C of E High School, James attended Blackpool Sixth Form College and Lancaster University, graduating in 2004, gaining BSc. first class honours. He joined Moore and Smalley, Preston in 2005 and qualified as a...
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