Festive tax tips

As the countdown to Christmas begins, we thought we would bring you our own special Festive Tax Tips.

Tax Tip 3: Research and Development

Does your company constantly strive to improve current products, develop new products or work with customers to create bespoke products? Have you automated a previously manual process?

If so, you may be entitled to claim R&D tax relief. Depending upon the size of your company or group of companies you could get additional tax relief of between 30% and 125% of the amount you spend on qualifying R&D activities. This additional deduction will result in a lower corporation tax liability and in some cases may create tax losses. If you are in a tax loss position and are eligible the 125% relief, you may choose to surrender the losses for a cash repayment from HMRC.