Businesses within the energy industry can apply for R&D tax credits when they have attempted to meet government targets to produce greener sources of power. Methods of trying to achieve this ambition include harnessing energy through solar panels, wind turbines and wave/tidal power systems.
R&D Energy Tax Credits For Businesses
The benefit of successfully applying for research and development tax credits in the construction industry is that your company could be thousands of pounds better off, boosting the level of capital you could reinvest into the business.
At randd, we have a proven and lengthy history of securing tax relief for our construction clients, offering a bespoke and tailored service that enables us to maximise your claim.
What activities qualify for business energy tax credits?
Examples of eligible R&D activities include:
- Producing items more cost-efficiently with high safety standards
- Overcoming uncertainty such as weather interference and environmental concerns
- Achieving scientific or technological breakthroughs
- Developing and maintaining complex structures such as wind turbines in changing weather conditions
- Improving energy efficiency and reducing carbon emissions
How do corporate tax credits work?
The amount of research and development tax relief you can claim depends on the size of your company and, if it is classed as an SME, whether it is profit or loss-making and how much you spend on R&D.
If your company is R&D intensive, i.e. more than 40% of total expenditure is on research and development, then a higher rate of tax relief can be claimed.
Large energy companies come under the separate RDEC scheme, with the threshold being over 500 employees and a turnover of more than 100 million euros or a balance sheet total above 86 million euros.
The expenditure credit for the RDEC scheme is calculated at a rate of 20% of the company’s qualifying R&D expenditure.
Whether you receive a cash adjustment or a credit against your Corporation Tax bill, the funds are a very useful resource which can be reinvested into your energy business.
Read our full guide on how to calculate your R&D tax relief.
How to claim energy tax credits for businesses
Firstly, although it may appear to be a complicated matter, claiming R&D tax relief in the energy sector is not something you have to tackle single-handedly – randd can do much of the work for you.
If you think your energy business qualifies for research and development tax credits, enlisting randd to manage your claim can ensure the process advances smoothly.
When you contact us, we will talk you through the scheme and explain what we need to know, for example the dates of the initial trial-and-error, what that involved and who was working on the project.
Other important information includes details of wasted materials or prototypes you spent money on, plus access to utility bill records.
When you have collated enough data that will give us a good idea of whether you have a viable claim, feel free to contact us for an initial discussion.
Get support claiming R&D business energy tax credits
At randd, we believe in managing our clients’ expectations – we will not categorically state at the outset of the process that you have a cast-iron qualifying claim as there are restrictions we have to work with.
For example, the areas of expenditure need to be clearly managed and described, so we will ask a lot of questions to ensure your claim is completely valid before moving to the next stage.
The initial step is a pre-qualifying call with a member of our team who, if they adjudge the R&D activity qualifies, will issue you with a contract. When the contract has been signed and returned, one of our experienced R&D tax credits managers will contact you about booking you in for an initial consultation within the next two-week period depending on availability.
Contact our team of experts by calling us on 01332 409 711 or emailing [email protected]
