Many retailers and wholesalers create solutions to automate, streamline, and accelerate their supply chains. R&D expenditure can include any methods or software designed to actively regulate stock levels, manage orders, and speed delivery. Because of his many E-Commerce and Retail companies are eligible for R&D tax relief.
The average R&D claim value in the e-commerce and retail sector is £47,344.
What qualifies as R&D in the retail and e-commerce industries?
It is possible to discover qualifying R&D in the way that retailers and wholesalers are responding to their clients demands. The development of sophisticated e-commerce systems is an example of this. Not only that, but backend interfaces that must communicate with stock and accounting systems and for which no off-the-shelf solution exists and bespoke software is necessary also qualifies. App development, in which an existing off-the-shelf app must be upgraded or additional code generated may also be eligible for R&D relief.
Qualifying R&D Tax Costs in E-Commerce and Retail
R&D tax credits are determined as a percentage of costs incurred during qualifying activities. The most significant cost is usually the cost of employing individuals to conduct R&D. This will most likely be software developers in eCommerce, but you may also be able to add a fraction of other employees.
Employed people’s PAYE salaries, as well as their employer pension and National Insurance contributions, can be included. A percentage of money spent on relevant subcontracted work qualifies as well.
Following these, other potential expenditures to include would include some software costs, as well as some of your R&D-related utility costs such as heat, light, and power.
Check Your R&D Tax Relief Eligibility
Here at Enhance Consultants we make it easy for companies to determine whether they are eligible to claim R&D tax relief. If you would like to see if you are eligible, all you need to do is contact our R&D specialists today. They will be able to take a few simple details from you, and quickly identify your eligibility. If you are eligible they will then be able to assist you in securing the maximum benefit, and if not, you will be able to get on with your day without being charged a penny. You have nothing to lose.