{"id":9904,"date":"2014-06-18T00:00:00","date_gmt":"2014-06-17T23:00:00","guid":{"rendered":"https:\/\/www.processindustryforum.com\/2014\/06\/18\/research-development-pays-engineering-manufacturing-companies\/"},"modified":"2014-06-18T00:00:00","modified_gmt":"2014-06-17T23:00:00","slug":"research-development-pays-engineering-manufacturing-companies","status":"publish","type":"post","link":"https:\/\/www.processindustryforum.com\/hot-topics\/research-development-pays-engineering-manufacturing-companies","title":{"rendered":"Research and Development pays off for engineering and manufacturing companies"},"content":{"rendered":"

Research and Development really pays. We mean that in a literal sense because did you know that many UK based Process Industry businesses could be in line for R&D tax relief? Read on to find out how.<\/p>\n

Research and Development Relief is a Corporation Tax relief that might just help to slash your company’s tax bill. Or if you’re an SME (more about the qualifying criteria later) you can claim a cash lump sum in the form of a tax credit. As long as you’re liable to pay Corporation Tax, there’s a possibility of claiming a welcome windfall.<\/p>\n

There are two schemes for claiming relief, depending on the size of the company:<\/p>\n

The Small and Medium-sized Enterprise Scheme<\/h2>\n

 <\/p>\n

\"Enginners_research\"<\/p>\n

The Small and Medium-sized Enterprise Scheme has higher rates of relief according to HM Revenue and Customs (HMRC)<\/a>. They say, \u201cFrom 1 April 2012, the tax relief on allowable R&D costs is 225% – that is, for each \u00a3100 of qualifying costs, your company or organisation could have the income on which CT is paid reduced by an additional \u00a3125 on top of the \u00a3100 spent. It also includes a payable credit in some circumstances.\u201d<\/p>\n

It’s worth noting that you can only claim under the scheme for SMEs if your company meets the definition of an SME for R&D Relief purposes.<\/p>\n

What is an SME for R&D Relief purposes?<\/h3>\n

You might be surprised to learn that HMRC defines an SME as a company with fewer than 500 employees and either of the following:<\/p>\n