R&D Tax Credits Are Little To Do With Taxation or Accountants

Posted by on 16 Jan 2013 in R&D Tax Credit | 0 comments

That’s right. Even though the official method of claiming R & D Tax Credits is via a box on your company’s CT600 form the actual claim itself is completely separate from Corporation Tax. You do not even need to use the form in some cases as the claim can be submitted separately from the Corporation Tax computation and return. Sure, figures from your accounting system are needed to calculate the amount you can claim, but that does not affect the figures used for the main Corporation tax return in any way. It has been estimated that between 80% and 90% of the work necessary to make a Research and Development Tax Credit claim is industry knowledge and not accounting knowledge. The skills needed are being able to identify what activities you undertake that fall within the scheme, why they do so and how to describe them in terms that the Tax Inspector can readily understand. The majority of that work requires technical understanding to recognise what your developers are doing coupled with the skill to document it in an easy to understand manner that complies with the HMRC regulations. Yes, you do need an encyclopaedic knowledge of the hundreds of pages of HMRC information and advice, and the skill to read accounting records, but it is the technical understanding that trumps the lot. If you are already claiming RDTC then who is building your claim? Unless your accountant, whether internal or external, is skilled and up to date both technically and with the latest HMRC information then it is highly likely that you are under-claiming, maybe by as much as 50%. Surely it’s worth a look to see. Call for our free R & D Tax Credit assessment service...

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US Company Shows R&D Tax Credit Increases Profitability

Posted by on 10 Jan 2013 in R&D Tax Credit | 0 comments

US company Meditronic has increased its earnings per share forecast based solely on the renewal of the US R&D Tax Credit. The Minneapolis-based medical-equipment maker said it expects to earn $3.66 to $3.70 per share. Its prior guidance was for $3.62 to $3.70 per share. Medtronic said that the new guidance is based on the beneficial impact from the renewal of the U.S. Research and Development tax credit. The company estimates the credit adds 4 cents per share to its full-year earnings. So what is it worth for you and your company in the UK? Another US company, Amgen Inc.  lowered its earnings estimates was by $0.10 for 2012. This lowered figure was said to be due to a delay in the financial impact of a research and development tax credit. The original forecast was based on the R&D Tax Credit being in place long before its actual renewal of Jan 1, 2013. How do you find out more? Simple. Call for our free R & D Tax Credit assessment service today. We will advise whether or not you have a claim. There’s no sign on cost and our fee is fully contingent on results. So nothing for you to lose – except an opportunity to claim if you...

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R&D Tax Credits Renewed In US ‘Fiscal Cliff’ Deal

Posted by on 2 Jan 2013 in R&D Tax Credit | 0 comments

Surprise, surprise. Today, in the USA, Technology trade groups that represent Google, Microsoft and Cisco lauded the research and development (R&D) tax credit extension included in the final “fiscal cliff” deal approved by the House late on Tuesday. The Information Technology Industry Council (ITI) and the Telecommunications Industry Association (TIA) were delighted with the renewal covering the two year period. They said the R&D tax credit is “key to maintaining the United States’s position as a leader in the global tech industry”. The credit deal meant that it applied retroactively extending the scheme until the end of 2013 in the approved “fiscal cliff” legislation. It expired at the end of 2011. “The R&D credit has been, and will remain, a cost-effective policy for increasing research activity and producing a dollar-for-dollar increase in research spending,” TIA President Grant Seiffert said in a statement. “We can’t keep cutting things like basic research and new technology and still expect to succeed in a 21st-century economy,” said President Obama, hailing Congress’s passage of a budget related to the so-called “fiscal cliff.” So, if your company is an innovator in any technical field, then you should be taking advantage of the UK’s scheme – your competitors over the water are! How do you find out more? Simple. Call for our free R & D Tax Credit assessment service today. We will advise whether or not you have a claim. There’s no sign on cost and our fee is fully contingent on results. So nothing for you to lose – except an opportunity to claim if you...

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