Ways to get money back from the government
Through our field of expertise, R&D, your business can reclaim a number of your business expenses back (at least partially). If your business has engaged in R&D projects and developmental processes over the last two financial years, the following costs can be reclaimed as part of a credit in the HMRC’s R&D scheme:
Staff Costs
This tends to be the largest part of R&D credit claims. Staff costs encompass not only the salary of company employees but also the company’s NI and pension contributions for staff members that are directly involved in R&D activity. Salaries and staff costs claimed for must be prorated for the rough percentage of their time was spent working on R&D projects in the years listed.
Consumables
This category covers products and materials used up or consumed during the development process. The consumables are typically not left in their original state at the end of development. Consumables also includes some utilities – such as electricity, heat and water – which need to be prorated for their usage on R&D projects.
Subcontracting Costs
Subcontractor costs are a complicated aspect of the R&D tax credit process; but, in basic terms, 65% of your spend on subcontractors for your R&D projects can be reclaimed.
Software
The costs of software used in your R&D projects can be rebated in your R&D tax credit claim.
What costs don’t qualify?
Rent
The costs of renting where you conduct your research projects do not qualify for the R&D tax credit scheme.
Travel costs
If your employees had to travel to different sites for testing or other aspects of your R&D projects, those costs are ineligible to be reclaimed.
Telecommunications costs
While heat, power and electricity qualify, phone costs cannot be included in your claim.
There you have it, if your business has conducted or been involved in any R&D projects, you are eligible to reclaim – at least partially – the listed costs!
At Kapitalise, we’ve got a wealth of experience in R&D credits. We can help you parse out your R&D costs and reclaim the maximum benefit possible with the minimum possible fuss. Get in touch with us at hello@kapitalise.co.uk to set up a completely free-of-charge consultation to analyse your expenditures and get valuable advice on your business’ potential claim.