With effect from 1 April 2011, there are changes to the tax rules concerning R&D expenditure.

Prior to 1 April 2011, a company could claim 175% of expenditure incurred on R&D when calculating their profits for corporation tax purposes.

From 1 April 2011, this increases to 200%, and from 2012 there is a further increase to 225%.

Expenditure can include:
      • Staffing costs
      • Software and consumables
      • Heat and light
      • Subcontracted R&D

For expenditure to qualify as ‘R&D’, there needs to be an advance in technology or science beyond your company’s existing knowledge.  It does not have to be a whole new process or product.

We would be happy to talk to your designers and engineers to determine whether any ongoing work could be claimed to be R&D.  If you require any further information, please contact Becky Ames on 0845 0774163.

Offices at: Bungay, Colchester, Cromer, Dereham, Diss, Fakenham, Holt, Ipswich & Norwich
www.larking-gowen.co.uk