Kinetic cashes in on R&D tax credits
A recruiter, whose company stands to receive between £10,000 and £15,000 in government tax credits from investing in research and development (R&D) in technology, has urged others to follow his example.
“Tax credits are available if you are spending money on R&D,” Neil Smith, managing director of engineering, manufacturing and technical recruiter Kinetic, told Recruiter.
Smith said his company had qualified for the tax credits after investing in R&D in Web 2.0 and in vendor management technologies.
Companies must spend at least £10,000 on R&D to qualify for the HM Revenue and Customs scheme. Those with fewer than 500 employees can claim relief of 175% of expenditure, which means for every £100 spent their taxable profits are reduced by £75. Companies with more than 500 employees and an annual turnover of less than £100m can claim 130% relief.
Smith suggested recruiters approach Business Link for advice.
