Tips of Getting R&D Tax Credit Services
There are quite a number of factors that prove eligibility of a project to get tax credits. However, depending on the nature and size of the enterprise, you can get a refund of the money spent in qualifying R&D. For example, SMEs can get back up to 33{7d1e40ebd6982924326d8fa9e417d1e7993c0c0852ebf8cc82da44ee858b43d1} while large companies may get up to 10{7d1e40ebd6982924326d8fa9e417d1e7993c0c0852ebf8cc82da44ee858b43d1} refund of their R&D. Even if the project makes losses or profits on its implementation, you will still get refunded. Tax credits can be gotten if the following tips are considered.
Scalability and performance level of your project is very critical in determining whether there was research and development involved in your project. This means that, there has to be technical uncertainties in your project. What this means is that, only unique and new ideas can be researched about and developed. You can only research and develop something that its outcome cannot be predetermined. Also, innovation is a very important factor that will qualify your R&D project or disqualify it. First, if the knowledge of how the project was done is not common, then it qualifies to be R&D. Your project must achieve results that are unique to itself for it to qualify for tax credits and refunds.
Secondly, the cost of the project can be a determining factor on whether it is a R&D or not. Less spending on the project is a clear indication of how simple and straight-forward it was, which disqualifies it from being a R&D project. However, spending $100k or over means that the project had several technical uncertainties which makes it eligible for R&D tax credits. Research and development of projects will usually require a lot of funds to undertake, and that’s why the cost of the project is a key factor in getting credit taxes.
Finally, staff qualification and time spent in the R&D can equally be used to judge whether your project is R&D or not. If you have many qualified people helping you in the project, then there are high chances that it is R&D. Time spent in carrying out research and development is equally important in the determination of whether the project is R&D or not. This, however, isn’t a necessary signal, and the project can still be viably R&D even with few people involved. What the number of staff and time will be used to determine, is the amount of money the project consumed. When you employ more experts to help you in the project will require you to spend more on staff salaries, purchase of equipment and software, and other miscellaneous tasks. Hence, even if it fails, you will still be refunded a certain percentage of what you spent.