What is the scheme designed for?
The scheme is designed to encourage and support companies who invest in technological innovation. Therefore, if your company is or has been involved in; designing or developing new processes, new products or other new software in the past two years which you feel are technologically innovative, then almost certainly Blue Sky will be able to help you.
How does the R&D tax credit work?
The R&D tax credit works by allowing companies to deduct up to 175% of qualifying expenditure on R&D activities when calculating their profit for tax purposes. Companies which are SME’s can (in certain circumstances and subject to certain limits) surrender this tax relief to claim payable tax credits in cash from the HM Revenue & Customs.
Should I consider making a R&D claim?
If you are able to answer “Yes” to the following questions, then you should consider making a R&D claim:-
- Is the organisation being considered a Limited Company?
- Is the company a going concern?
- Does the company produce a product or provide a service which is considered innovative in its field?
- Does the company pay over £10,000 PAYE/NI in relation to employees each year?
If you are able to claim under the SME scheme, then you can potentially receive a payable tax credit of up to £24 for every £100 of R&D expenditure incurred.
Could your company qualify under the SME scheme?
To qualify, your company must:-
- Have under 500 employees
- Have a turnover under €100m
- Have a balance sheet total not exceeding €86m
- Be able to confirm that no subsidies or state grants have been received in respect of R&D expenditure
How can Blue Sky Corporate Finance help you?
Blue Sky has been successfully helping our clients with R&D tax credits since the government introduced the scheme in 2000. We specialise in managing the process to obtain the maximum benefit due under the HMR&C administered R&D tax scheme.
We specialise in helping the owners/managers of small and medium enterprises to become investment ready, raise finance, start up a business, to sell a business, to undertake management buy outs/buy ins and to make corporate acquisitions.