While it is difficult to briefly set out precise definitions of what constitutes R&D expenditure, "expenditure that advances science or technology or provides an appreciable improvement in an existing process, material or product" will probably be acceptable for a Tax Credit. The R&D Tax Credit claim is based on the company's total payment of PAYE, NIC and NIC Employer's contributions, the amount of which is the maximum of the actual refund. 

Companies can qualify for the rebate whether they are profitable or loss-making. Utilising the surrenderable tax losses there is actually the possibility of a financial repayment available for a company in a loss-making position.

R&T Consultants are a firm specialising in what can often be an extremely complicated area of tax compliance. Their expert advisors assist companies to receive their maximum R&D Tax Credit refund entitlement and operate on a ‘no win, no fee’ basis. For more information contact This e-mail address is being protected from spambots. You need JavaScript enabled to view it at Ariadne. 

Another area often overlooked by early stage businesses is the Small Business Rate Relief Scheme, operated by all UK local authorities. Instituted in April 2005, the policy allows small businesses to claim up to 50 percent relief on premises with a rateable value up to £15,000. The tax break is worth up to £2,500 a year. 

However, according to official figures, more than half of those eligible fail to claim their payment entitlements. In an effort to address this, a private members’ bill has been launched to attempt to make small business rate relief payments automatic, but in the meantime, make sure your business has claimed for it. More information is available at www.businessraterelief.co.uk. 

In November 2008 HMRC set up a new, dedicated Business Support Service designed to meet the needs of businesses affected by the market downturn. For companies concerned about meeting tax, National Insurance, VAT or other payments owed to HMRC, help is at hand. Via the Business Payment Support Line, HMRC staff are available to review circumstances and discuss temporary options tailored to individual business needs, such as arranging payments over a longer period. Additional late payment surcharges can be avoided on payments included in any arrangement, although interest continues to be payable on those taxes where it applies.

For more details, go to www.hmrc.gov.uk/pbr2008/business-payment.htm or call the Business Payment Support Line number: 0845 302 1435.