More than 65% of all commerce, including online sources, are now being generated by SMEs. The market for entrepreneurs has never looked better.
With more and more professionals deciding to break out on their own, the tides are changing in the financial marketplace.
It can be incredibly difficult to take your idea, product or service and build a successful business around it, so missing out on businesses advantages can be devastating. Much of your start-up budget when you are starting your company is likely going into Research & Development. Don’t mistake these funds as just the cost of operation or you could be missing out on some pretty impressive tax credits.
Research and Development is defined by Wikipedia as the “creation or improvement of a product, procedure, process, program or equipment, demonstrating originality or substantial improvement.” If this sounds like you and your business, it could be time to talk to a team of R&D Tax Credit Consultants to see where you can save some money.
Who Can Claim R&D Tax Credits?
Any business can potentially claim a Research & Development tax credit if you are:
- Designing a new product for the market
- Doing research into new areas of knowledge
- Working on product upgrades and innovations
- In the process of pre-production testing and development
Long Term Benefits
For small to medium size businesses, the refund that you can get on your annual taxes can help to fund further research and development. You can integrate your tax credit right into your development program. This can allow you to continually expand and strive for newer heights within your own company.
Your R&D tax credits can also help you to reduce your overall business taxes, which can help put you in a lower bracket. Many credits can be applied to up to three years of previous open business and can also be applied into future years.
Continuous investment and development can help to increase your company’s market value, improve your reputation and increase your cash flow. Let your hard work pay off through the incentives of the government. They want new companies to continue to develop new products and knowledge and are open to allowing tax credits to those who will benefit the most.
Tax Advice
The world of taxes, credits and qualifications can be a tricky one to navigate. If you are a business owner that is primarily focused on your product or service and less on keeping the books, then you may want to speak with a tax credit consultant. Let the professionals guide you through the process of application and advise you on where you can apply for credits.
With more and more SMEs applying for R&D credits, the system has become more stringent. Unless you are familiar with the process, it is in your best interest to let a pro guide you. Your chances of receiving the full benefits from your application are much higher when you work with a tax credit consultant.
