Could you be missing out on tax relief by misinterpreting Evolution and Innovation?
Are we Innovators?
If you ask most business owners if their business is at the forefront of innovation they will probably say no.
However, if you ask them whether the business has kept up with the market trends to keep commercially viable, then they will mostly say yes.
By spending time and money keeping up with the market, the business has been involved in innovation.
Why does Innovation matter?
Innovation is what drives the economy forwards. As such, the government has developed a system of tax relief that rewards those undertaking innovation.
This innovation doesn’t have to be creating space-age technologies of the future. If your business develops a product that is lighter, cheaper, or longer lasting than before, then this is innovation.
This is the type of work that qualifies for Research and Development (R&D) tax relief.
There is no definitive list of what improvements a business has to make to qualify for R&D tax relief, and the more niche and unique a concept, the more likely it is to be eligible for the tax relief.
What is R&D tax relief?
The R&D tax relief allows businesses that are eligible to claim up to 230% of the expenses incurred during the innovation.
For example, if you have spent £10,000 on innovation then you can claim up to £23,000.
The real life scenario is likely to be more complicated than this example.
How can we help?
The team at Tax Expert are specialists in this area, and can take you through the process from start to finish.
To find out more information click on the R&D Tax Credit section of the website.