Accounting for R&D Tax Credits
If you’re looking forward to tapping into R&D make sure you’re claiming your research and development tax credits. Know that R&D tax credits are sponsored by the government Our accountants for tax credits help you out with various incentives. The government has been supporting all these tax incentives on regular basis for innovation and create new technology-driven employment. Business owners usually don’t realize what constitutes of R&D. These credits are ten times more expensive than what business owners realize.
Who is Eligible for R&D Tax Credits?
Businesses of all sizes can claim tax credits. Major corporations with research labs top the list. But what makes the business qualify for the tax credits. Here are a few ideas:
- Your company must come up with new products or designs
- Your company enhances existing products or services.
- You company is already working on different prototypes and softwares.
How to Claim R&D Tax Credits
If you’re all set to claim tax credits, know that potential savings will help you save the day. To get the tax claim, the taxpayer must evaluate and document all their research activities. This will help you keep a record of the fact that you’ve spent some amount on each qualified research activity. With the right documents, you put taxes on the table. Startups and small businesses can claim up to $1.25 million of federal R&D tax credits to offset the Federal Insurance Contribution Act (FICA) portion of taxes. Still, Confused about the tax credits? Let our Accountants in Croydon help you out.
