Calling all businesses who are failing to claim their Research and Development Tax Credits (R&D). These generous benefits from the UK government are there to help UK AD businesses. They are available for UK Anaerobic Digestion and Biogas Plant Operators. Are You Claiming?
Experts believe that Biogas Plant operators often carry out Research and Development and should be accessing R&D tax credits. But many companies in the industry often overlook this.
UK AD Companies – Make Sure You Claim the UK Treasury’s R&D Tax Break
The UK AD industry’s general accounting skills may not extend to a capability to make the relevant claims. Do you know if yours is being claimed?
It is a fact that biogas plants are not all created equal. AD industry companies need to carry out unique research on their processes all the time. Each biodigester requires a lot of research and development to prove it feasible. This is money that can in principle be claimed back.
It is vital to claim R&D tax credits while existing UK biogas incentives are running out and replacements are still uncertain.
Government Support for Anaerobic Digestion is Waning
Experts worry that tax reliefs such as Feed-in Tariff (FiT), which is now closed to new applicants, and Renewable Heat Incentive UK (RHI) subsidies (now running out), are not being claimed.
They encourage AD plant owners to use every available way to maximize their incomes.
They point out that it is vital to use all tax vehicles that are legal to maximize net revenue, increase net revenue wherever possible, and ensure that all AD plants are financially sustainable in the future.
British biogas requires all the R&D tax credits it can get!
You can watch the short video below, which summarizes the main points of this article;
British Biogas Industry – Stop Feeling Unloved by Government and Claim R&D Tax Relief!
The British biogas industry is not seeing the same success as it had hoped.
It may be true that the government has been accused of stifling its growth by cancelling subsidies and by acting in an erratic manner by decreasing a new applicant’s subsidy rates and cancelling them at short notice.
The AD industry could also be responsible for not appreciating, and not always applying for this tax relief. AD operators in all areas of the UK should make sure that they benefit from the generosity in UK taxation that exists for R&D Work and this is a benefit that has existed for some while.
In the past 2 to 3 years, a number of governments have increased their support for the biogas industry whereas the UK government has not.
As part of the European Green Deal, the German, French and Italian governments have all provided new subsidies to biogas plants.
UK Government Needs to Take More Green Action
It must act quickly if the UK wants to host the Global Climate Change Summit and be recognized as a leader in fighting rising global temperatures.
Meanwhile, it is crucial that AD plant operators be savvy and make the most of all tax breaks available lest the UK treasury does not act to stimulate more new biogas capacity to be built.
R&D Tax Credits for Biogas Plant Operators
It is possible that many Anaerobic Digestion and Biogas companies could be eligible for R&D (Research and Development Tax Credits). Let’s look at the tax credit available.
It is important to first understand the meaning of research and development.
Research and development are a fundamental part of all businesses. It’s when they try to provide new or improved products, services, and processes.
This is part of the discovery phase, where end knowledge is created to help in deciding whether or not the product, process or service is viable.
What are R&D Tax Credits?
The UK Government has created a tax relief fund to encourage small and medium-sized businesses to invest in activities that fuel innovation, research, and development.
This innovative Tax Relief scheme is sector-neutral. Your biogas or anaerobic digestion business may be eligible for a Tax Credit. This could reduce your Corporation Tax bill or allow you to receive a refund repaid to you by HMRC.
Many bioresources, biogas, and anaerobic digestion businesses don’t realize they do R&D. They miss out on vital re-investment funds that could help them reach their next goals faster.
Is My Anaerobic Digestion or Biogas Business Eligible?
These are the questions you should ask yourself. If you answered yes to any one of them, then you might be eligible:
- Is my company involved in projects that seek to eliminate uncertainty?
- Is my business spending time improving products and services, or processes?
- Is my company willing to invest in time and effort to develop new products, services, or processes?
The UK Government wants local businesses to succeed and be world-class. That’s why the R&D tax credit scheme was created.
Many AD plant companies don’t have the knowledge to evaluate their potential to claim back R&D spending. If so, specialist anaerobic digestion or biogas R&D tax experts can help maximize the claim that your business deserves.
What Industry Experts Do R&D?
It’s reassuring that research and development can be found in all industries, from small businesses to large corporations. There are many industries that are well-known, such as Manufacturing, Professional, Scientific and Technical Information and Communication, but there are also many other industries, like bioresources, which are eligible.
It is exciting to see the potential of R&D activities. When you consider that HMRC has been vocal in stating that not all eligible businesses are eligible for R&D tax relief, it could be a great opportunity for your company.
Is AD/ Biogas Plant Operators Getting R&D Tax Credits – Worth It?
Available Grants (TM), claims experts, have calculated that the average claim amount for SMEs is approximately £47k.
So, it is worth the effort to get professional advice to maximize your claimable value. You can go through the process yourself and ask your accountant for a submission.
However, you might want to think about why it is better to leave it to specialists.
Are Biogas Plant operators eligible for R&D claims?
Your project(s), taking into account the HMRC definition of R&D, should challenge and overcome uncertainty and add new knowledge. An expert can help you determine if your project(s) achieved this.
What Costs Are Included in the Biogas Plant Operators Research and Development Category?
Without getting into too much detail, the anaerobic digestion industry and biogas plant operators are often shocked when they are told that wages, salaries, prototypes, trials, consumables, etc. are eligible as part of R&D costs.
They often say that they never heard that before!
Experts in taxation state that there are many other cost categories that may be eligible. Many of the advisors can also work with you on a No Win No Fee model, so you don’t have to pay even one pound if they fail to make your claim successful.
To find out how much you might be able to claim, use an R&D calculator.
To help you determine how much you might be eligible for, we provide a link that will take you to a calculator. Click Here to Use a free R&D Tax Credit Calculator.