All businesses, big and small, are entitled to consider eligibility for claiming the R&D Tax Incentive. The incentive is not industry specific at all. In some cases, a business will be making something innovative but simply assume that its R&D is not eligible for the incentive. But more often than not, their innovation could actually be eligible.
There are 3 guidelines to understand if the Research and Development is eligible.
1. Core R&D Activities: Eligible R&D activities typically involve systematic, investigative, and experimental activities aimed at generating new knowledge or creating new or improved products, processes, services, or software. These activities should be conducted with the intention of resolving technical uncertainties.
2. Technical Uncertainty: To qualify, your R&D activities must address technical uncertainties. This means you should be attempting to overcome challenges or uncertainties that cannot be readily solved by a competent professional in the field.
3. Experimentation and Innovation: R&D should involve a level of experimentation, innovation, and creativity. It's not sufficient to perform routine or incremental work; there should be an element of seeking new solutions or breakthroughs.
If you're unsure whether your R&D activities qualify, our team can help.