R&D Tax Advisory
The Research and Development (R&D) Tax Credit is a government incentive designed to reward UK companies for investing in innovation. They are a valuable source of cash for companies to invest in accelerating R&D, hiring new employees, and ultimately growing.
What are the potential benefits of the R&D tax credit?
There are several advantages to implementing R&D tax credits. These benefits may include the following:
Deferred credit payments up to 20 years.
Reduce your federal and state income taxes by the dollar.
Increase earnings per share.
Use of the federal R&D tax credit on payroll taxes (applies to some startups).
Perform retrospective studies to document unclaimed credits in open tax years (usually 3 or 4 years).
Receive up to 12 to 16 cents of federal and state R&D tax credits for each qualifying dollar.
Benefits of the R&D Tax Credit
As a form of financial innovation, the R&D tax credit can transform your business. At Forrest Brown, we aim to help innovative companies realize the full potential of R&D tax incentives so they can thrive. This is because the benefits are extended.
Companies spend money to develop new products, processes or services; or improve existing ones, qualify for an R&D tax refund. If you spend money on your innovation, you can claim an R&D tax credit to receive cash payments and/or corporate tax relief. The possibilities for defining R&D are enormous – in fact, they exist in all fields. And if you're signing up for the first time, you can usually claim a reduction in R&D taxes for your last two completed accounting periods.
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