R&D Tax Credits in Care Homes – Daniel James Tax

R&D Tax Credits in Care Homes

R&D covers several aspects of business, from food products, cleaning products to software development, and even in light bulbs. So, what’s the catch? Well, you should have done something innovative without ensuring that it can become successful. In other words, Care Homes have a lot of opportunities in qualifying for R&D!

Check if you are eligible for R&D Tax Credits

By answering the questions below we can provide you with personalised online eligibility check.

Step 1 of 6: Your Company Details

Is Your Business a Limited Company?
Research and development tax credits are only available for limited companies registered in the UK.

So what is R&D?

R&D refers to research and development. The government created this R&D incentive in order to help in boosting innovation in various industries including care homes. This is your chance to reduce your corporation tax bill or obtain a refund from HMRC depending on the number of hours that your company devoted to R&D.

UK Care Homes which dedicate their time in creating new products and services, improving the current ones or expanding their total skills in their field are legible to claim tax relief for their R&D activity. This government scheme aims to push forward innovation by providing support to care homes who desire to enhance or overcome challenges or doubts in their products and processes.

Based on the data obtained from Catax, there are approximately 800,000 businesses that are qualified for R&D tax relief, but unfortunately, only 5 to 6 per cent are claiming it. This only proves that the definition of R&D is more extensive than most people think!

What makes me eligible?

The key is actually in its name. You have to do some research about your own idea and develop it. The fact is, this idea does not have to be successful. The important thing is you have to declare that you have attempted to do something new in the past, then you can claim back its costs depending on the time it was undertaken in addition to the cost of the products.

The following are some of the things that you can claim but not limited to:

  • Creating a new food product
  • Constructing your furniture based on your own blueprints
  • Creating a new cleaning product
  • Generating exercise/meal plans for residents
  • Building a new piece of technology, for instance, you have created a database of residents
  • Conducting research in collaboration with Universities, for instance, you could discover a way to enhance the quality of life for those people who have cognitive impairment.

These are just some indefinite ideas of what can be claimed. As what you might observe, all the things that are listed above can be considered as new and innovative, however, they also carry some doubts whether they will succeed or not. That is precisely what HMRC are searching for.

How does it all work?

You can start by availing of our free, no-obligation consultation with one of our R&D experts. In other words, finding out if you can qualify won’t cost you anything. Our R&D specialist will provide you with an in-depth explanation of what R&D is all about and what can qualify. They will ask you about the activities that your company is conducting which you think might qualify for R&D tax relief.

After establishing a basic understanding, you will be required to send over your end of year accounts, CT600, as well as any other basic information. You will be provided with an estimated amount for your refund, afterwards, your claim will be submitted. We can assure you of a 100% success rate beyond this point – your money is assured!

Some examples of innovation:

Have you ever invented your own products? For instance, cleaning chemicals.

Hiring employees with a technical or scientific background?

Generating exercise and diet plans to enhance your resident’s way of life?

Have you participated in research of disabilities you found in your care home?