R&D tax relief: facts and FAQsThe R&D specialists at Luvo Financial answer your questions on R&D tax claims and challenge some common misconceptions
What are the financial benefits of an R&D Tax Claim?
There are three main types of tax benefit that arise from a successful claim for R&D Tax Relief – these are 1) a payable cash credit, 2) a rebate of corporation tax and 3) an enhanced deduction that can be carried forward.
What if an R&D project is unsuccessful?
It does not matter if your project was unsuccessful, it’s the R&D activity that is important and not the outcome. Even if your project was unsuccessful, the uncertainties weren’t overcome and the advance was not achieved, we can still help you claim for the time and money invested in working to overcome those uncertainties.
Claiming is risky and may lead to broader tax investigations
With specialist advice and guidance, it is highly unlikely that an enquiry would be raised on your tax relief claim. The scheme’s are Government imposed, introduced to encourage innovation and R&D activity within small UK businesses, therefore, if filed correctly – there should be no issues with claiming and certainly no impact on other areas of taxation.
We need to own the IPR in order to claim
Unlike a number of years ago, this is not the case anymore for making an R&D Tax Credit Claim. You do not need to own the IPR (intellectual property rights) to claim.
We are too small to claim R&D tax relief
There is no minimum number of employees when claiming. Click here for the Luvo R&D eligibility checker.
Programming is not R&D
Most development work undertaken using IT, is potentially eligible for claiming R&D Tax Credits. Luvo can help you assess this further.
Our employees must include PhD / highly qualified people
You do not have to employ highly qualified / PhD level people to be eligible to claim, a wide range of employees can be involved in R&D activities
What Does LUVO mean?
Luvo is Latin for ‘To help and to aid’ which embodies our ethos here at Luvo Financial