How Scaleups Benefits from R&D Tax Incentive
The scale-up phase is the most important stage of a company’s growth as it is both critical and fleeting. It is the stage where investment, income, customers, and the number of employees is growing. Scaling up a business can introduce new challenges as there is a need to improve a company’s existing systems and create new ones. It is essential for scaleups to have the financial resources it needs to fuel its growth – and this is where the Research and Development tax incentive (R&D Tax incentive) can help.
As scale-up companies further develop their products and enter new markets, they can easily rely on the federal government’s R&D Tax Incentive to help them with their business expansion plans. If you are a scaleup company conducting eligible R&D activity, the R&D Tax Incentive programme can give you as much as a 43.5% tax incentive. Which can provide tax refunds that can help fund almost half of the company’s development costs.
The R&D Tax Incentive caters for companies with under $20 million in turnover with a 43.5% refundable tax credit for each dollar of R&D spent. The R&D Tax Incentive offers company’s over $20m in turnover a non-refundable tax offset of 8.5% above the company’s tax rate for expenditure up to 2% of their overall expenditure. In addition, for R&D expenditure over 2% of their overall expenditure, the company receives a 16.5% in non-refundable tax offset above the company’s tax rate. Tax Incentive caters for companies with under $20 million in turnover with a 43.5% refundable tax credit for each dollar of R&D spent. The R&D Tax Incentive offers companies over $20m in turnover a non refundable tax offset of 8.5% above the companies tax rate for expenditure up to 2% of thier overall expenditure. In addition for R&D expenditure over 2% of their= overall expenditure the company receives a 16.5% in non refundable tax offset above the companies tax rate.
Scaleups usually have larger claims than startups. Therefore, it is likely for scaleup companies to be subjected to increased scrutiny by both AusIndustry and the Australian Taxation Office (ATO). Innercode can help you in this regard by assessing which activities your scaleup company is eligible to claim for the R&D tax incentive and by assisting you with crucial record-keeping that can prove the eligibility of your R&D activities.
Furthermore, by having the right advice and insights, you can be sure of maximising your R&D tax claim so you can use this extra cash to boost your fund and resources as well as improve your cash flow management. We are also happy to guide you on how to update your company’s structure and systems to better facilitate R&D activities as you grow and insights, you can be sure of maximising your R&D tax claim so you can use this extra cash to boost your fund and resources as well as improve your cash flow management. We are also happy to guide you on how to update your company’s structure and systems to better facilitate R&D activities as you grow.
We at Innercode have years of experience delivering R&D Tax incentives to many software and technology companies – from startups, to accelerators, to high growth ventures, to scaleups and to medium enterprises. Through our streamlined process of analysing claims, we are confident that we can help you determine your eligible projects and activities in just a few hours of your time.
Our expertise has helped many startups scale up and scaleups to expand. We provide high-level support to help provide the systems and structure to be able to scale up your R&D claims as your company grows. We will work with you every step of the way to achieve your dream.
