Making Tax Digital for Income Tax introduces new reporting requirements for many sole traders and landlords. Below are answers to some of the most common questions about MTD, including who it applies to, what records must be kept, and how quarterly reporting works.
If you're new to Making Tax Digital, you may also find our MTD timeline, our short guide to MTD for Income Tax, and our MTD preparation checklist helpful.
Funding your ambition
Companies looking to make the next big breakthrough in sciences and technology can make the most out of the Government’s research and development (R&D) tax credit scheme.
Not only can these credits be claimed on successful projects, but failed ones also. Before deciding on whether to apply for R&D tax credits, you’ll have to understand the difference between the two schemes.
Here’s where we come in. Affinity Richmond can help you decide which of the two schemes you may be eligible for.
The first scheme is known as the SME R&D scheme. Your company will be able to claim this if:
- you have less than 500 staff
- a turnover of under 100m euros.
The SME scheme varies from the research and development expenditure credit scheme (RDEC). RDEC can be claimed by large companies carrying out R&D or even by SMEs and large companies who are subcontracted to do R&D work.
As of April 2023 SMEs will be able to recover up to 10% of their qualifying costs. Some of these costs could include
- staff salaries and wages
- materials and prototypes
- software and cloud computing
- utilities
Want to discuss the best option for you?
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