Approaching the April 2015 Lodgement Deadline for R&D claims
Make sure that you are not missing out on the R&D tax incentive.
Certain companies can claim a tax offset for expenditure incurred on Research & Development (R&D) activities. The aim of this offset is to encourage companies to invest in R&D work to create new or improved materials, products, devices, processes or services.
We note that the deadline for the lodgement of the 2014 R&D tax incentive claim is 30 April 2015 and we can assist you with lodging your claim.
How does this offset work?
The size and nature of the offset depends on the turnover of the company:
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A company with a turnover of less than $20 million per year can qualify for a 45% refundable tax offset;
- A company with a turnover of $20 million or more can qualify for a 40% non-refundable tax offset.
How can this offset benefit your business?
This incentive offers cash ow benefits for smaller businesses that qualify for the 45% refundable tax offset.
Broadly, such companies will receive a cash rebate equal to 45% of the amount spent on R&D activities regardless of whether they are in a loss position or not. This cash injection can be particularly helpful for start-ups that are often cash-strapped.
However, larger companies (i.e. companies with a turnover of $20 million or more) who are in a loss position will only be able to carry forward their 40% offset to be used in later years.
How can Nexia help you?
Nexia has the necessary skills and experience to assist you with all your R&D claims and record-keeping requirements to ensure you have the best chance of qualifying for the incentive.
We can do a R&D health check of your activities to determine whether you are eligible for the R&D tax incentive. If you are eligible, we can assist with your AusIndustry registration so that you can claim the offset. We can also review your R&D plan and ensure it meets all the necessary requirements.
It may therefore be worthwhile to discuss with your Nexia Advisor, whether any of your activities may qualify as R&D and therefore qualify for the offset.
