If you work for a large company, the benefits of R&D Tax Credits could be significant. Here’s what you have to gain from claiming.
If you work as part of a busy organisation’s finance team, we know that reducing your corporation tax is key.
At GrantTree, we understand that the needs of larger businesses are different to those of SMEs.
Our specialist team is ready to help you navigate the process of applying for R&D Tax Credits.
For the purposes of collecting tax credits, a large organisation is classified by HMRC as follows:
- Up to 500 employees OR
- Turnover more than €100 million AND
- Balance sheet more than €86 million
One of the real advantages of applying for this form of tax relief is that it encourages your business to continue to behave like a start-up; to take risks, to grow your people and to invest in uncertain projects which could have a dramatic impact on your market share.
The precise benefits of R&D Tax Credits to large companies can vary. But, as a rule, larger organisations should expect to see approximately 10% of what they invest in R&D back from the government.
Here’s why larger organisations shouldn’t overlook the benefit of R&D Tax Credits.
Reduce your tax bill
The average claim made by large companies in the UK in the 2014-15 period was £349,540 (2014-15).
Large companies are able to claim back up to 8.8p for every pound spent on R&D, even if they are making a loss.
So, if your business spent £1 million on R&D each year, you could receive up to £88,000 back against your tax bill.
You can still claim this tax relief, and reduce your corporation tax regardless of whether you are receiving grants or subsidies for your project.
It also doesn’t matter if your tax credit claim is offset against your current year’s corporation tax, if you have paid PAYE and NIC.
It’s worth remembering that the payable benefit will be capped at the total amount of PAYE and NIC paid to R&D workers.
Invest in innovation
For large organisations, discovering that there is government support for innovation will ultimately encourage a more positive attitude towards R&D.
Projects can begin more quickly, and this innovation can be translated into a selling point for new conversations with clients.
Let us help you navigate the process of claiming for your projects, while you enjoy talking about what you do, and the exciting direction of your business.
If you work for a large organisation, the quickest and easiest way to oversee your application for R&D Tax Credits is to contact a specialist.
By letting us do all the work, you don’t need to prepare the technical or financial parts and can focus instead on doing what you do best.
Get in touch with us today!