We are calling all UK based businesses who have failed to claim their Research and Development Tax Credits! The generous benefits, which are available from the UK government, are intended to assist UK companies including those in the anaerobic digestion and biogas industry. They are available for UK Anaerobic Digestion Operators and Biogas Plant Operators. Are you claiming yours?
Taxation experts have warned that Biogas Plant owners often conduct Research and Development and should have access to R&D tax credit. However, many companies do not know this. They are missing out on a substantial UK tax break which is there for the asking.
UK AD Companies: Make Sure You Claim The UK Treasury's R&D Tax Break
The general skills of the UK AD industry in accounting may not allow them to make relevant claims. These small to medium-sized companies find it hard to keep up. Is yours being claimed?
It's a fact that not all biogas plants can be treated the same. AD industry companies have to conduct unique research about their technology every day. Every biodigester needs extensive research to prove its feasibility. This money can, in principle, be claimed back.
It is important to claim R&D credit tax credits, as the existing UK biogas incentives run out and there are no replacements.
Get Government Support for Anaerobic Digestion R&D While It's Still Available
Accounting experts worry that tax reliefs, such as Feed-in Tariff (FiT) which is currently closed to new applicants and Renewable Heat Incentive UK(RHI) subsidies (now out of date), are no longer going to be available. But even one relief which is currently on offer isn't well enough known about in the biogas industry. So, very often it is not being claimed.
They encourage AD-plant owners to maximize their income and apply for Research and Development Tax Credit.
They stress the need to make use of all tax vehicles to maximize profit. This will ensure that biodigester plants can be financially sustainable in future.
British biogas is Worthy of all R&D Tax Credit it Can Get
Below is a short video that summarizes the key points of the article.
British Biogas Industry Advice: Stop feeling neglected by the government and claim R&D Tax Relief
The British biogas sector is not enjoying the same success that it had been hoped it would see.
It is possible that the government was responsible for stifling growth by cancelling subsidies, acting in an erratic fashion by decreasing applicants subsidy rates. And then cancel them at short notice.
This could also be due to the fact that the AD industry is not able to appreciate and does not apply for one important tax relief. AD operators across the UK should take full advantage of the UK's generous tax regime for R&D Work. It has been around for quite some time.
The UK government is not the only one that has increased its support for biogas over the past two to three years.
In the European Green Deal, the French, German, and Italian governments all provide new subsidies for biogas plants.
UK Government Should Take More Green Action
It must act quickly if it wants to host and be recognized for its leadership in fighting rising temperatures.
It is vital that AD plant operators make use of all tax breaks to maximize their potential to generate more biogas capacity.
R&D Tax Credits As an Incentive for Biogas Plant Operators
There is a possibility that many Anaerobic Digestion and Biogas businesses could be eligible for R&D credits (Research and Development Tax Credits). Let's examine the tax credit that is available.
It is essential to first understand what research and development (R&D) mean:
- Every business must have research and development. It is the process of creating new or improved products and services.
- This is part of the discovery phase. It is where end knowledge is generated to aid in deciding if the product or process is viable.
- What are R&D Tax Credits and how do they work?
The UK Government established a tax relief fund in order to encourage small- and medium-sized businesses that invest in activities that promote innovation, research, development, and creativity.
This innovative Tax Relief program is sector-neutral. You may be eligible to receive a Tax Credit for your biogas and anaerobic digestion businesses. This could help reduce your Corporation Tax bill and allow you to get a refund from HMRC.
Many businesses in bioresources and biogas don't realize that they also do R&D.
Is my Anaerobic Digestion (or Biogas) Business eligible?
These are the questions to ask yourself. If you answered “yes” to any of these, you may be eligible:
- Are you a part of projects that eliminate uncertainty?
- Does my business spend time improving products or services?
- Does my company have the time and resources to create new products, processes, or services?
- The UK Government wants local businesses to succeed and become world-class. This is why the R&D tax credits scheme was created.
Many AD plant companies aren't equipped to determine their eligibility to claim back R&D expenses. Experts in biogas R&D tax and anaerobic digesting can help you maximize the amount of R&D spending that your company is entitled to.
What Industry Experts Think of this R&D Subsidy
It is encouraging to know that research and development can be found in all industries from small businesses to large corporations. Many industries are well-known such as Manufacturing, Professional Scientific and Technical Information and Communication for ploughing a lot of money back into their businesses to keep their research up to date. However, there are many other industries that are eligible like bioresources where many companies seem strangely reticent about claiming.
It is thrilling to see the potential R&D activities have for the UK industry. This could be a fantastic opportunity for your business, considering that HMRC is vocal in stating which biogas (anaerobic digestion) businesses are eligible to receive R&D tax relief.
Is it worth it for AD/ Biogas Plant Owners to Claim R&D Credits?
Experts in claims have determined that the average claim amount for SME’s under Available Grants (TM) is around GBP £50,000.
Professional advice is a good idea to maximize your claimable amount. You can also ask your general accountant for assistance but very often this is a sub-optimal choice because:
- A general accountant will need paying for his/her time spent to do research on the tax rules before they can start writing a claim
- A specialist tax consultant in R&D Tax Back Claims will know from the kick-off what the tax rules are in this specialist taxation area
- A specialist will also know the wrinkles which can be applied to ensure that you claim as much money back on your R&D work as is justly allowed.
But, it might be worth thinking more deeply about why it's better to leave this to experts.
Are Biogas Plant Operators Eligible to Receive R&D benefits?
The HMRC definition of R&D should be taken into account in your project(s) and record-keeping can help a lot when making retrospective tax back claims. Each project against which R&D Tax Credit is chargeable must challenge and overcome uncertainty to be eligible. Plus it should add new understanding to man's existing knowledge. You can have an expert help you decide if your project has achieved this.
Why Should the AD Industry Make More Research and Development (R&D) Claims?
R&D is one of the first steps in establishing a new anaerobic digestion facility, process, or service, or improving a current one. Experimentation and invention, as well as danger, are common at this period. Ideation and theorising are frequently the first steps in the R&D process, followed by research and exploration, and finally design and development.
R&D is arguably more important than most other functions in biogas firms. Because of the numerous advantages of the anaerobic digestion process, no two biogas firms are the same. A company may stay competitive and profitable by launching new products or enhancing old ones.
If your project satisfies the UK government's definition of R&D, you may be eligible for Corporation Tax reduction. Reliefs for research and development (R&D) help firms that work on cutting-edge science and technology initiatives. It may be claimed by a variety of businesses looking to do research or produce a breakthrough in their industry. It may even be used for failed initiatives.
Reliefs for research and development (R&D) can only be provided in cases where there is a high level of uncertainty. This may be difficult to demonstrate in certain businesses, but it is much simpler in a fresh and inventive industry like biogas. New ideas and possible synergies emerge all the time, requiring R&D to determine viability.
Why is it necessary to invest in R&D?
Businesses of all sizes must engage in research and development in order to achieve future growth, keep current with industry advances, and lower manufacturing costs. Brunel University London, recommends R&D . It's is a world-class research university devoted to providing solutions to businesses of all kinds. Academics from a variety of fields contribute significantly to the success of their commercial partners through contributing to R&D projects with groundbreaking tax break eligible original research.
R&D refers to the activities that businesses engage in to develop and introduce new products and services, as well as to enhance their current offers. R&D helps a business to stay ahead of the pack. R&D is conducted by firms in several areas and industries. Pharmaceuticals, semiconductors, and technology companies spend the most.
In both the business and government worlds, as well as the public and private sectors, the word R&D is generally associated with innovation. When R&D is done properly, a firm may stay ahead of the competition. A firm that does not have an R&D programme may not be able to thrive on its own and will have to rely on other methods of innovation, such as mergers and acquisitions (M&A) or collaborations. Companies can use R&D to develop new goods and enhance old ones.
Biogas Plant Operators Research and Development Category
The anaerobic digest industry and operators of biogas plants are often shocked to learn that wages, salaries as well as prototypes, trials and consumables are all eligible. If not they may be eligible for part R&D expenses. Many times, they say they've never heard of it before.
Experts in taxation claim that there are other cost categories that might be eligible. Many advisors will also work with clients on a No Win No Fee basis. This means that even if you do not win your claim, you don't need to pay a penny.
An R&D calculator can help you determine how much you could be eligible to claim.
A link to a Free R&D Tax Credit Calculator in the article here will allow you to calculate how much money you might be eligible for.