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R & D Update
In recent months, claims for enhanced tax relief and indeed repayments under the Research and Development scheme have been keeping us busy. Are you missing out? Basically, the rules provide for tax relief on up to 175% of the cost of qualifying research and development: or in some cases the tax relief can be surrendered in exchange for a cash payment. The relief is available only to companies and different rules apply to “large” and “small” companies (typically with up to 250 employees and under £40m turnover). Under the rules, “R&D” means developing scientific or technological knowledge that isn’t commonly available. Creating or appreciably improving a product, process or service can sometimes require you to develop this sort of know-how though merely innovative in a commercial sense isn’t likely to be enough on its own. For more details, see the HMRC guidance.
Naturally we aim as part of our regular review or a client’s tax affairs to identity the scope for any R&D claims which we think may be possible. Nonetheless, if you are a client of BKL and you think there may be some R&D activity which we haven’t discussed with you, please get in tough with us. And if you are not yet a client of BKL and you think that there is an R&D claim to be made, please give us a call to see how we can help or email david.young@bkltax.co.uk.
