Tips of Getting R&D Tax Credit Services
Tax credits are given after the project meets minimum requirements fully. However, depending on the nature and size of the enterprise, you can get a refund of the money spent in qualifying R&D. While SMEs are likely to get up to 33{8547e11abb8607c8970183b59248411953552a85522221fc4ab5ead417b0355d} of their money refunded, large companies will get up to 10{8547e11abb8607c8970183b59248411953552a85522221fc4ab5ead417b0355d} refund. 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.
First, your idea has to be highly scalable and enhanced performance. Your project must entail some technical uncertainties which will require some research and development. In other words, if you already know the outcome of whatever you are intending to do, then it doesn’t qualify for research and development. 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. It is mandatory that for any project to qualify for R&D tax credits, it must have achieved results that have not been previously achieved.
Cost of the project is equally an important indicator of the complexity or simplicity of the project, and helps determine if it is R&D. For example, spending $3k or less will mean that you did an obvious project whose results can be know, and there were no technical uncertainties encountered. If for instance you use $100k to complete you project, the project will definitely qualify for the tax credits because there must have been technical uncertainties. 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.
Lastly, the number and level of qualification of the staff that undertook the project is a key factor in establishing if it is R&D. The more the people you employ in the project and the higher their qualification, the better the position the project stands in qualifying to be R&D. Also, the amount of time these personnel spend in the project has to be more for it to be R&D. However, lack of this won’t necessarily lower your chances of getting credit taxes whatsoever. The number of people involved in the research and development process is key in the determination of the cost of the project. 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. This means that you will be entitled to a refund of a certain percentage of whatever amount of cash you put into project research and development.