Despite the availability of R&D tax credits, many businesses miss out on claiming them due to common misconceptions.

Let’s take a look at the most common, and how relevant they really are…

Misconception 1: R&D tax credits are only for large, high-tech companies

This is not true, but is the most common misconception!

Companies of all sizes and across various sectors can claim R&D tax credits. Whether a business is involved in manufacturing, construction, agriculture or even creative industries, there’s a good chance that R&D tax credits are relevant.

Misconception 2: The application process is too complex

While the process of claiming R&D tax credits involves detailed documentation and a clear understanding of what qualifies as R&D, it’s not as daunting as it seems. Many companies choose to work with specialist advisers who can guide them through the process, ensuring that all eligible activities are identified and accurately claimed.

We can guide you through the initial stages, or provide details of external contacts for whom other clients have given positive feedback.

Misconception 3: We didn’t achieve our project goals, so we can’t claim

One of the biggest benefits of the R&D tax credit scheme is that it rewards innovation, even when projects don’t go as planned. If your company attempted to resolve a technological or scientific uncertainty, it could still qualify for relief, regardless of the outcome.

In summary…

R&D tax credits are an invaluable resource for UK businesses, providing financial support that can be reinvested into further innovation. Whether your company is a small startup or a large enterprise, engaging in activities that advance science or technology could make you eligible for significant tax relief.

If you’re unsure whether you could make a claim, please get in touch; we’ve advised many businesses and supported successful claims over many years, so are both happy and able to help!