R& D Tax Credits to Help Support Welsh Recovery; Make Sure You Don't Miss out on Lucrative Tax Relief to Help Subsidise Your Company's Research and Development Projects Writes Denise Roberts from Pkf

Western Mail (Cardiff, Wales), June 24, 2009 | Go to article overview

R& D Tax Credits to Help Support Welsh Recovery; Make Sure You Don't Miss out on Lucrative Tax Relief to Help Subsidise Your Company's Research and Development Projects Writes Denise Roberts from Pkf


Byline: DENISE ROBERTS

There is widespread belief that UK recovery and future growth will stem from both new technologies and research into green energy.

In Wales we have a growing number of established and fledgling businesses who are undertaking research and development at the cutting edge of technology. However, projects come at a cost.

R& D activities typically have a long lead time before the fruits of any investment are realised.

This, coupled with the scarcity of funding available from traditional sources, means that it is more important than ever for companies to look at other ways of funding these vital activities.

While in Wales we have the added benefit of grant support available from the Welsh Assembly Government, R& D tax credits play an important part in helping to plug the funding gap.

R& D tax credits were introduced by the Government back in 2000 for small companies and the relief was extended to large companies in 2002.

The relief effectively subsidises the cost of R& D work done on projects costing pounds 10,000 or more.

Small and medium-sized companies who have less than 500 employees and either a turnover up to EUR100,000,000 or balance sheet assets up to EUR86,000,000 can make a claim to increase their R& D tax deductible costs by 75%. This gives an effective cash subsidy of 36% for companies paying tax at 21% and 49% for companies paying tax at 28%.

Furthermore, for those companies who are currently making losses the enhanced R& D costs can be surrendered to HM Revenue and Customs in return for cash.

The cash received is basically a refund of PAYE and National Insurance contributions that the company has already paid over in respect of its employees.

For example, if a company has pounds 100,000 of qualifying R& D costs, the cash refund potentially available is pounds 24,500 - that is a cash saving of 24.5%.

Large companies do not miss out and can claim to increase their R& D tax deductible costs by 30%. While large companies have taken a bit longer to join the R& D tax credit 'party', they are now firmly focused on maximising any opportunities available.

But it is important to note that only companies can claim this relief and, therefore, those individuals undertaking research as unincorporated businesses will not be able to access the benefits.

In addition to the R& D tax credit relief for revenue expenditure, valuable relief is also available for costs incurred on capital expenditure. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

R& D Tax Credits to Help Support Welsh Recovery; Make Sure You Don't Miss out on Lucrative Tax Relief to Help Subsidise Your Company's Research and Development Projects Writes Denise Roberts from Pkf
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.