R&D Tax Credits are rewards for innovative R&D projects that may
1) advance science and technology
2) did or tried to overcome an uncertainty
3) not easily solved by a professional in the field.
These metrics are similar to inventive step in patent law i.e. is the problem solved in a way that is not obvious to a skilled but not inventive person in the particular technology.
In the UK, there is a specific SME R&D relief that allows companies to:
- deduct an extra 130% of their qualifying costs from their yearly profit, as well as the normal 100% deduction, to make a total 230% deduction
- claim a tax credit if the company is loss making, worth up to 14.5% of the surrenderable loss
While many expert companies exist, we can help write up a technical report for R&D Tax Credit claims. Contact us for further details.