Owning a business and struggling with each tax that has to be paid on time? This article is here to present you all the criteria you must meet in order to obtain a Research and Development tax credit. Even if you don’t know much about this topic, if you read the summary of info right here you will start understanding how important obtaining one of these credits actually is. R and D tax credits are supposed to encourage all the companies existent in each field of work to invest in their research/development sector. These kinds of credits were initially introduced in 2000 and since them big and small companies started investing in R&D. If you are interested in obtaining one, keep reading below the requirements you’ll have to meet:
First criterion to take into account is that your company should be a Limited one. Being an autonomous company means that you will gain the Limited suffix right after your business’ name. Your company should own all the existent profits, should be paying all the existent taxes and the rest of the money should be proportionally distributed to the existent shareholders and to the working capital. The main advantage of owning a Limited company is that you can increase your profitability much easier with the help of loans and credits. One drawback would be the fact that each share is sold privately. The raised capital is therefore somehow restricted.
All you have to do to register your company in UK is set up the details and register online. When owning a Limited status company you need to pay a small amount of money for registration and it takes as little as 24 hours to have your business registered. You can also opt for registration via any specialist agent or third-party software. Once your company is finally registered you will obtain a certificate to use later on.
UK corporation taxes
Everyone knows that in UK corporation taxes are not something to worry about. The taxes regime is one of the factors that influence the overall economy of a country. As mentioned before, you can deal with paying corporation taxes online, with three months before actually starting your business. Buying, selling and other activities are implied. Register with your UTR number and specify the date where you are going to start working.
The Generally Accepted Accounting Principles represent a condition to obtain a Research and Development tax credit. There are three main sets of rules that a company has to follow regarding GAAP accounts: the accounting guidelines, the rules issued by FASB/APB and the industry practices that are accepted in the respective country. Owning a GAAP account means that you are actually respecting all the rules and standards you need to respect, including the accounting methods used.