R&D Tax Credits

karenburton1305

Hello fellow moneysavers! 
I need your help because I'm feeling a bit dumb! I'm looking to turn my side hustle into my full time gig (YAYYY) but taxes are scrambling my brain. 
I came across R&D credits on Recoup Capital's website but I'm struggling to understand exactly what they are. Could someone just explain them really simply to me? 

Thanks in advance!!

uknick

Without going into any detail as to what research and development costs are in accounting terms, which will be the basis for the the tax credits, do you meet the following criteria?

To be eligible for R&D tax credits, your company must be a UK registered limited company subjected to corporation tax and you have invested in research and development activities.

uknick

Just in case anyone else wonders about tax R&D credits, or gets a spam call offering a service to get the tax credits;

https://www.accountingweb.co.uk/community/blogs/david-okeeffe/bike-sheds-and-other-ridiculous-rd-claims?utm_medium=email&utm_campaign=AWUKTAX010321&utm_content=AWUKTAX010321+CID_d70a98cccf59377f35ccc2ebfbeb0e95&utm_source=internal_cm&utm_term=Bike sheds and other ridiculous RD claims
 

Steve182

To be eligible for R&D tax credits, your company must be a UK registered limited company subjected to corporation tax and you have invested in research and development activities.

or have at least pretend to have invested in R & D activities, as is often the case

karenburton1305

So when we say R+D activities, can that be any research that I need to do for the company??

uknick

karenburton1305 said:

So when we say R+D activities, can that be any research that I need to do for the company??

Have a look here;
https://www.gov.uk/guidance/corporation-tax-research-and-development-rd-relief
extract that seems pertinent;
"To get R&D relief you need to explain how a project:

• looked for an advance in science and technology
• had to overcome uncertainty
• tried to overcome this uncertainty
• could not be easily worked out by a professional in the field

Your project may research or develop a new process, product or service or improve on an existing one."

Do you think you qualify?

karenburton1305

Oooo I see! So it's not just research and development to further your company but rather on a wider level for science/tech?