Research and development (R&D) is a fundamental factor in the economic growth of most countries. A strong economy necessitates superior technology, which requires new ideas that are often developed through research and testing processes. However, this process can be expensive for companies that cannot fully offset costs by generating revenue from their inventions. Hire AM Plus Accountancy for claim R&D tax relief.
The UK government has created an incentive program called Research & Development Allowance (RDA) to help reduce these costs for eligible organisations. However, many people don’t realise they qualify for this type of credit or fail to take advantage of it due to a lack of knowledge about how the system works.
The rules around R&D tax relief are often misunderstood. This is mainly because different industries can claim their research and development (R&D) activities, while others cannot. For more information, accountants Glasgow will equip you with everything you need.
Industries that typically qualify:
Life Sciences:
As we move towards a more reliant future on technology and the internet. It has become increasingly important for countries to invest in growing sectors such as life sciences.
These include medical devices, pharmaceuticals and biotechnology, which have a key role to play in our ability to maintain leading positions as we move away from a traditional manufacturing-driven economy.
Engineering Design & Advanced Manufacturing:
This sector is considered an essential driver of economic growth and a significant source of high-quality jobs. It was estimated that by 2020, the industry would create nearly one million new job opportunities in Europe alone.
While Europe is a major player in this sector, countries such as China and the US are also investing heavily into emerging technologies, providing further opportunities for companies to compete on an international stage.
Tourism and Events:
Many governments worldwide have identified this sector as one of high potential given its ability to create jobs at all levels and support local economies.
The tourism and events industry has been identified as one that will play an essential role in promoting economic growth, employment opportunities, and social inclusion when the world is experiencing significant demographic shifts in terms of population age structures and urbanisation levels.
Digital Technology:
Digital technology is a key growth sector that supports globally competitive industries and drives economic growth.
The industry focuses on using information and communication technologies to create, manage and distribute data such as digital images or text documents in an electronic format.
Higher and Further Education:
This sector plays a key role in modern societies, not only as a source of knowledge and learning but also as a key factor in economic competitiveness.
Efficient higher education systems are considered to have the capacity to promote innovation and productivity growth across the economy. An essential aspect for countries looking at ways to address population ageing issues alongside. Other demographic challenges such as increased urbanisation levels.
In Conclusion:
The amount of tax relief you can claim will depend on what type of R&D your business is carrying out. Therefore, to find out more information about your eligibility. How much you may be able to save, please get in touch with accountants Glasgow.
