Advancing Innovation with Research and Development Tax Credits with Operation Baseline

Research and Development (R&D) Tax Credits are a UK government incentive designed to encourage companies to invest in innovative and technological advancements. They offer a way for businesses to reduce their tax bill or receive a payable tax credit based on the amount they have spent on qualifying R&D activities.

Any UK company that is subject to Corporation Tax may be eligible to claim R&D Tax Credits. This includes businesses developing new products, processes, or services, or enhancing existing ones with a technological advancement.

Projects that qualify for R&D Tax Credits are those that aim to achieve an advance in science or technology. The project must involve overcoming scientific or technological uncertainty and could include creating new algorithms, developing innovative manufacturing processes, or enhancing existing technologies.

Yes, R&D Tax Credits can be claimed even if the project was unsuccessful, as long as the project was genuinely seeking a scientific or technological advancement and met the other qualifying criteria.

An advance in science or technology means an improvement in overall knowledge or capabilities in a field, not just an enhancement of a company's own knowledge. If your project has developed a new process, product, or service, or improved an existing one in a way that wasn't readily deducible by a professional in the field, it may qualify.

You can include a variety of costs when claiming R&D Tax Credits, such as staff wages, subcontractor fees, materials, utilities, software, and some types of capital expenditure.

To claim R&D Tax Credits, you'll need to submit a detailed R&D report with your Company Tax Return that explains how your project meets the necessary criteria. Operation Baseline can assist you in preparing this report and identifying all qualifying expenses.

Yes, as long as you are undertaking qualifying R&D activities and incurring eligible expenses each year, you can claim R&D Tax Credits annually.

You can claim R&D Tax Credits up to two years after the end of the accounting period in which the costs were incurred.

Operation Baseline offers expert guidance through the entire R&D Tax Credits claim process. We help identify qualifying projects and expenses, prepare the necessary documentation, and ensure you receive the maximum benefit for your innovative work.