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EIt's not often the taxman hands
out money but here's a chance to give your company a competitive edge
with a helping hand from HM Revenue & Customs (HMRC).
Any company operating within the engineering sector in research and
development could be eligible for tax credits, which could reduce tax
bills or, in certain circumstances, provide a cash payment.
HM Revenue & Customs' head of Cambridge Research & Development
Tax Credit unit, Iain Rickerby explained: "If your company is involved
in R&D, give HMRC a call to find out if you might qualify for funding.
We can advise you on the application process and answer any questions
you may have."
Research and development tax credits were first introduced in 2000 to
promote investment in innovation and are open to businesses of all sizes,
but HMRC is urging more small and medium-sized enterprises (SMEs) to
take advantage of this type of tax relief. Seven specialist HMRC units
have been set up across the country to help companies make successful
claims for the relief and HMRC reports that more than 4,500 SMEs are
already claiming in excess of £250 million each year in tax credits.
The tax relief works by allowing companies to deduct up to 150% of their
qualifying expenditure when calculating profit for tax purposes. This
is set to rise to 175% per cent next year with qualifying expenditure
including: staff costs, consumable items and software, which is directly
related to R&D activities. A full definition of research and development
for these purposes is provided by the Business, Enterprise, and Regulatory
Reform Department (formerly the DTI).
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