Research and development (R&D) tax credits are there for companies that are actively trying to innovate. The R&D scheme is there to be utilised by companies from all sectors. As a result of not realising the broad range of areas that can be considered as R&D, many do not claim despite being entitled to it.

Why should my business utilise the R&D scheme?

With the kinds of incentives that the R&D scheme offers, many businesses not only grow faster as a result of being able to invest more, but are also able to stand out from their competition by investing in forward-thinking technologies. By utilising the R&D tax scheme, your company could be eligible for a 33% tax refund or reduced tax liability as a loss-making business. Companies can even be entitled to a 26% refund as a profit-making business.

Is my company eligible for R&D Tax Credits?

To be eligible for R&D Tax Credits, a business simply needs to show that they are carrying out innovative tasks that are technological or scientific in nature. This does not mean that your business is expected to be at the forefront of academic thinking, simply that it is trying to innovate. It is more important that you prove the following:

• You have attempted to advance some aspect of technology or science.
• There has been some kind of uncertainty that needed to be challenged.
• The task could not be carried out simply by a professional.

To find further details on these requirements, visit the government website.

How can R&D Tax Credits be’ used to offset digital marketing costs?

With the landscape of digital marketing changing at the rate of knots, this is one area that it can be very useful to focus your R&D efforts. By investing in innovative digital marketing approaches and technologies, the financial hit can be lessened through R&D tax credits. By having your team work towards developing forward-thinking digital marketing techniques, wages can be offset with the R&D scheme. So, whilst still setting aside the same budget for marketing campaigns, you could potentially save up to a third of your costs by investing in these creative approaches. At novi.digital, we have sought to innovate at every stage, something shown in our history and our status as a Google Premier Partner. This is why we are able to provide the necessary guidance in developing your business’s in-house digital marketing so that it is able to think ahead of the curve.

How can savings made using R&D Tax credits in other areas of your business be used to fund digital marketing?

There are many ways your company could use R&D Tax credits in other areas of your business to fund digital marketing. By analysing how your company may already be carrying out eligible tasks, savings can be redirected without further costs. Similarly, your business could begin investing more into innovation. A benefit of this route is that businesses will often feel more comfortable developing their own products or approaches whilst still cutting costs for other areas such as digital marketing.

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If you have any questions about how you could best work with the R&D tax scheme to benefit your business, visit our contact page to talk to us directly.