| | | | | | | | | | | TAX PLANNING TIPS
| | | Research & Development Tax Credit
From 1st January 2009 a 25% tax credit is available for companies which are involved in the carrying on of Research & Development activities. The 25% credit is available for incremental qualifying expenditure (both capital and revenue) over the amount spent in a base year (2003) on R&D activities. Any unused credit can be carried forward indefinitely against corporation tax liabilities for subsequent accounting periods. Previous to 1st January 2009 the rate was 20%.
Are you carrying out R&D?
If your company is involved in any of the following activities, or similar, you could be eligible for an R&D tax credit of 25% of your eligible expenditure:
* Developing a new product/improving an existing product
* Developing a new process/improving an existing process or system
* Improvements to plant performance i.e. improving energy efficiency
* Improvements to production output (waste reduction, yield improvement substitution of raw materials,)
* Development of product specifications with customers or suppliers
* Use of universities or external experts to assist developments in your business
* Process changes to improve environmental or safety performance
* Plant/product trials either on the production line or on pilot facilities
* Automation of manual processes involving the development of new processes and systems
* Development of new techniques for production, analysis, testing etc.
* Modeling or simulation activities
* Development of solutions to reduce a high number of products returns ,due to failure or technical deficiencies
* Use of new or modified raw materials
* Have you received a Research and Technology Innovation (RTI) Grant or R&D Capability Grant
How can we help?
If your company is carrying out any of the above activities, and you are interested in knowing if those activities could be eligible for the valuable R&D tax credit, you should contact your accountant or tax advisor.
| | Should you require any assistance in relation to this matter please email me here | | | | | | | | | | | |
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