Claiming tax credits on e-commerce websites and web development
The vast majority of clients we see these days have a significant online presence and sell their goods and services in that way, especially in overseas markets. Some of them have made substantial investment in bespoke e-commerce development for: pricing, offers, payment or fulfillment. By way of example, some goods have to be dispatched from a third party site, an overseas supplier or a logistics company. However, the modification (or indeed creation) of such e-commerce sites may well qualify the company who has commissioned the changes for a claim for R&D tax credits.
Your company may also qualify for these tax credits if there are been some bespoke development to make a website mobile friendly, available for self service bookings and the rewriting of a customer management system or CMS. By way of example if your business has dozens of domain names that all pull information together in one CMS, then it may well require some bespoke development to make it work.
There are a number of really useful things to know about the R&D tax credits scheme:
1. You don’t need to be trading and making money to claim. Many companies make a claim when the development work has been done but before products and services are fully launched. Indeed some loss-making companies can pull cash back into the company with a claim.
2. HMRC makes cash payments to companies who qualify. This can then be used to either do further R&D or move the company forward in some other way.
3. The types of things that can be claimed for is probably wider than you think. For example, some outsourced R&D can be claimed, as can some contribution towards certain employment costs.
4. Some claims can include consumables This might include: heat, light and power used by the R&D process.
For some reason Yorkshire and Humber region lag way behind other parts of the UK for reclaiming this money from HMRC. It may be that you’re business is in this region and need help with a claim. Luckily the region has some excellent advisors including Nicole Ballantyne at Jumpstart and Craig Hughes at Brown Butler. The key thing here is to instruct an expert. Like everything else in professional services, appointing the right person is the key to success.
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