Why It Is Easier Than You Think To Get The R & D Tax Credit
There is a bit of a myth that in order to receive the governments R&D Tax Credit you need to be a supersized company with a massive research and development budget which employ hundreds of people in white coats. This is entirely not the case and this tax credit is of growing importance not just to the larger Texas companies, but to small companies and new start-ups too.
It is all in the Interpretation:
In previous times it has been harder for companies to gain and keep the tax incentive due to the onerous nature of the paperwork and evidential responsibilities that go alongside it. Changes and clarifications of the regulations and rules in recent times have allowed the interpretation of what can be seen as research and development to become wider and allow more companies to apply and successfully gain the tax credit. Industry as a whole benefits from this and none more so than the life sciences and healthcare areas. The opportunities for research and development in this industry are vast and it is time to take advantage of this tax credit.
How Do You Apply?
In order to receive the R&D tax credits, a company must meet the criteria which have been specified by the government. Looking at these criteria you can see why many companies just assume that they do not apply to them, but it is important that you speak to a company like Swanson Reed who can interpret these rules and who have expertise in the area, as the likelihood is that projects that your life sciences and healthcare company undertake come within the four part test and you could be receiving additional assistance with your taxes.
It’s an Ongoing Process:
Due to the nature of the R&D tax credits, a company should have an ongoing strategy for dealing with them. Because they have now been given a Tier 1 status it is likely that many companies receiving the credits will be audited. It is important to have the correct documentation and evidence to hand and to be able to maintain this documentation from the inception of any claim and throughout its lifetime. Knowledge of the tax system and rules around this specific area is a must in order to ensure that adequate paperwork is retained. It is therefore important to have the support of qualified and expert professionals in all R&D tax claim scenarios.
If you are at all unsure of whether you company is entitled to the tax benefits that R&D tax credits can provide you with, speak to one of the Swanson Reed professionals today and get the advice and guidance that you need.