Are you considering conducting a new project at your company? Could it qualify as R&D? Advance Assurance could provide you with a guarantee that your project will be eligible for tax relief under the SME R&D Tax Credit scheme. That means you could get a reduction in Corporation Tax, or a payable Tax Credit of up to 33% of your project spend. Sounds good, right?
First, you need to confirm whether your project is likely to qualify as R&D. You can find out more about this on the R&D Tax Credit page on our website. Good indicators that your project is likely to qualify as R&D are:
If you're unsure whether your work qualifies - we can help. Otherwise - the next question to ask - am I eligible for Advance Assurance?
There are restrictions on who can apply for Advance Assurance. Some of these are listed below, if you need any advice about which apply to you, feel free to get in touch.
If you're still reading - and you meet all the above criteria, you're likely to benefit from Advance Assurance. So, you probably want to know how to apply?
To apply for Advance Assurance, you'll need to prove to HMRC that your project qualifies as R&D. You'll also need to specify the costs that you will be including in your R&D Tax Relief claims. Knowing all of this before you've even started your project can be difficult. Zest can help you to formulate an Advance Assurance request, which will legally maximise the scope of your project, and the tax relief you're able to claim.
If you've got any questions about Advance Assurance, or you want help in making an application, feel free to get in contact.
Find out how how companies can meet the deadlines for R&D tax credit claims and all the key R&D tax relief changes coming into place in 2023.
Costs involved in R&D are tax deductible and there are two ways in which R&D costs can reduce a companies Corporation Tax liability. Firstly – with the usual deduction of 100% of the cost from your companies profits. In addition, the R&D Tax Credit scheme allows a further deduction of 130% of eligible R&D costs, […]
Chancellor Jeremy Hunt has announced a series of changes to the UK research and development (R&D) tax relief regime, including a cut to the deduction and credit rates for the SME scheme, the R&D tax credit. The rate of the large company scheme, the R&D expenditure credit (RDEC) will be increased from 13% to 20%, […]