Research and development costs are the costs a company sets aside for development and enhancement of their product. For example, a mobile phone company may set aside funds to enhance their products, whether we are talking its physical aspects or software to improve
sales. It can also include research on ways of improving what they already have. Most R&D costs are high and may make the current profit plummet but there is always a profit to look forward to in the long run. Some governments, like the UK government, give cash rewards to companies that invest in enhancing their products and services. For more information visit randdclaims.co.uk.
Who is qualified for the R&D cost rewards?
It does not matter if you are a large company or a small, growing company, or what sector you are in whether banking, hospitality or any other for you to be eligible for a R&D rewards
You will qualify as long as:
- You are in the process of creating a new product or service;
- If you are currently working on a new product; whether scientific or technological, or not related to either of the two you, may qualify. It does not matter if your company is making profits or losses, you can receive cash benefits from the government.
- Modifying an existing product or service
- If your company is working on making an existing product easy to use, or on how to offer existing services more conveniently, then you may also qualify.
What are the costs that can be claimed?
- Expenses on employees; that includes current staff, freelancers and third parties, their salaries, pensions.
- Cost of materials used, this may also include recurring expenses like electricity, water or fuel used up during the period.
It is important to note that your research does not have to be successful for you to qualify for the research and development cost rewards from the government.