R&D Tax Incentives are designed to reward efforts companies make to develop innovative activities. They apply to any company that pays corporate tax and that conducts innovative activities, regardless of its size, turnover or sector of activity. R&D tax incentives can reduce corporate tax liability by up to 100%, or be paid in cash in the event of insufficient tax liability. They therefore increase competitiveness and stimulate the continual improvement of products and processes.
The tax relief potential of the R&D incentive for SMEs is up to 33.35% of the cost of R&D projects, and up to 11% for Large Companies*. It therefore enables companies to maximise the benefits of their R&D activities.
As a consultancy specialised in the management of R&D financing, we identify company activities** that go beyond typical R&D projects but that are eligible for tax relief. We therefore increase our clients’ capacity to optimise the tax benefits on the cost of those activities, and enhance their return on investment.
In the event of an enquiry from HM Revenue & Customs, F. Initiatives delivers detailed, confidential reports to its clients with full justification of the amount of R&D tax relief or credit claimed.
* The definition of an SME for R&D tax relief purposes is the standard European Commission definition of an SME, but with doubled thresholds, i.e.:
Less than 500 employees
Either: annual turnover < €100 million OR total balance sheet < €86 million
All entities within a group are included in the calculation of the threshold.
** Eligible for tax relief are:
Activities which bring about a significant improvement in productive processes
Development of new products and improvement of existing ones