Also in the news...
If you run an EU-based business, check what your business needs to know to continue trading with the UK.
Find out about new safety and security declarations that will apply from 1 October 2021 on goods leaving Great Britain (England, Scotland and Wales).
It is one of the best ways for the Italian citizen to manage their business. This corporate vehicle allows access to multiple advantages of an advanced jurisdiction such as the US and also manages to maintain a low tax rate with very manageable levels of accounting and bureaucracy.
Joint Ministerial Declaration on Future Economic Cooperation between the Association of Southeast Asian Nations (ASEAN) and the United Kingdom of Great Britain and Northern Ireland (UK).
These are exciting times for Dubai and the UAE. With the entire business world’s attention soon to turn to the Emirates with the delayed Expo 2020 kicking off in October (and continuing all the way through to the end of March next year) it’s never been a better time to be a UAE business owner
R&D credits aren’t just for the ‘lab coat’ community!
The Times recently reported that celebrity chef Sat Bains has successfully claimed R&D tax credits from HM Revenue & Customs (HMRC).
Mr Bains secured the relief because the experimentation and innovation conducted in his development kitchen met HMRC's definition of R&D.
Despite the press coverage’s indication that this is “new news”, R&D tax credits have always been available to any company who pays corporation tax, providing they meet certain criteria. Since the R&D tax credit schemes were launched (2000-01), nearly 85,000 claims have been made and over £8bn of relief has been claimed.
According to HMRC’s R&D Tax Credits Statistic Report of August 2013, more than 24,000 different companies have made claims under the SME (Small and Medium Enterprise) scheme since it began (as well as 6,300 under the large company scheme, which launched in 2002-03).
The HMRC guidelines stipulate that:
“An R&D project seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty.”
What does this mean for businesses?
It means you may be able to reduce or eliminate your corporation tax bill, or perhaps even reclaim cash from HMRC, if you do something that could be considered research.
Despite the largest claims in 2011-12 stemming from Business Services and Manufacturing, companies in the following industry sectors have also made successful claims:
- Wholesale & retail, hotels & restaurants
- Mining & quarrying
- Financial Intermediation
- Public Administration & Defence
- Distribution of Gas, Electricity & Water
- Transport, Storage & Communication
- Education, Health & Social Work
- Agriculture & Fishing
Tax specialist, Melissa Christopher, commented:
“We have been proactively helping clients determine whether they qualify to claim R&D relief for a long time now and continue to highlight that it is a common misconception that R&D is only open to those in lab coats.”