Why R&D tax relief claims remain viable even after the say-nothing Spring Statement

The Spring Statement came and went with little fanfare, at least compared to the chaos of the Autumn Budget.

Many businesses had been hoping for something to alleviate the oncoming cost increases that are set to take effect in the new tax year.

For innovative businesses and the accountants that help them, there may have been a hope that the Government would further commit to R&D funding.

While nothing new was announced, R&D tax reliefs may have quietly become more valuable.

Are R&D tax relief claims more valuable than before?

R&D tax relief claims are known for being an incredibly effective way of managing expenses.

Not only are they directly proportional to the amount that a business spends on R&D work, they can also act as a much-needed cash injection.

While there can be delays in getting even eligible funds due to enquiries, R&D tax reliefs still manage to be a swifter way of getting money back into the business when compared to other investments.

This is due to R&D tax relief claims not being tied to the commercial success of a project, as they can be claimed on failed or aborted projects that will never generate income on their own.

If accountants are looking to help clients with R&D, then they should understand the full benefit they bring to businesses.

How can innovative businesses make the most of R&D tax relief claims?

The best course of action is to seek the advice of an R&D tax consultant to verify the validity of an R&D project and ensure that all eligible costs are covered in the claim.

Many of the rising costs that are causing dread for businesses can be included in an R&D tax relief claim.

The increase in the National Minimum Wage and the National Living Wage are expected to drive up salaries across the board, while conflict in the Middle East may increase energy prices.

Staff costs and energy costs can be included in an R&D tax relief claim to the extent that such costs are incurred during the course of R&D.

It is vital that routine expenses are not included, as these will render the R&D tax relief claim invalid.

For innovative businesses that feel let down by the lack of support from the Spring Statement, R&D tax relief claims remain a dependable way of improving their financial position.

As R&D tax consultants, we work with innovative businesses and the accountants who help them to ensure that the full value of R&D tax relief claims is felt.

Speak to our team today to find out more about making the most of R&D tax relief claims.

Adam Bointon