That R&D tax credits are often available to Biogas Plant operators is often missed by the general accountancy skills engaged by the UK AD industry, experts believe. We wonder whether you are claiming yours? No doubt that no two biogas plants are ever built quite the same! Every one of them requires quite a significant degree of research and development work just to prove its feasibility. Be aware that in principle, this is money that can be claimed back.
Claiming R&D Tax Credits is Vital While Existing UK Biogas Incentives are Running Out and Replacements are Still Uncertain
With Feed-in Tariff (FiT) closed to new applicants and Renewable Heat Incentive (RHI) UK subsidies eventually running out, and full details of the terms of the new UK's Green Gas Support Scheme (GGSS) are yet to be disclosed, experts are concerned that existing tax reliefs are being left unclaimed. They are encouraging the many owners of AD plants to tap into every one of the existing ways to optimise their incomes.
They see it as vital to use all legitimate tax vehicles to leave no stone unturned, to increase net-revenue now, and ensure that all AD plants can be as financially self-sustainable as possible in future.
British biogas needs all the help from R&D Tax Credits it can get!
Watch our quick video below which summarises the main points in this article:
British biogas is not taking off as fast as the industry had hoped. The government may justifiably stand accused of stunting its growth by not only removing subsidies but also by erratic behaviour in cancelling some at short notice and also reducing new applicant subsidy rates with excessive haste. Nevertheless, the AD industry may also be at fault for not appreciating, and not always applying for, tax relief in all the areas of generosity in UK taxation which do exist and have existed for some time.
A number of other governments have already expanded support for the biogas sector in the last 2 to 3 years. The French, Italian and German governments have for example all introduced new subsidies for biogas plants, as part of the European Green Deal.
If the UK is to be able to credibly host the Global Climate Change Summit as a leading nation in the battle against rising global temperatures, it needs to act fast. Until it does act, it is more important than ever that prudent AD plant operators ensure that they make use of every available tax break.
The following is based upon information available on the Available Grants website:
R&D Tax Credits for Biogas Plant Operators
There is a possibility that many more Anaerobic Digestion and Biogas businesses could be eligible to claim R&D (Research and Development) Tax credits than have been doing so. Let's go into more detail on the tax-credit available.
First, it's important to understand what is meant by research and development.
Fundamentally, all types of businesses carry out research and development activities when they seek to yield advances in providing improved or new products, services and processes. It forms part of the discovery phase to which end knowledge is crafted to assist in decision making on whether the viability of the product, service or process is worth it or not.
What Are R&D Tax Credits?
The UK Government has set aside a fantastic incentive in the form of a Tax Relief fund that encourages small and medium-sized (SME) businesses to further invest in their activities which fuel innovation, research and development. This brilliant Tax Relief scheme is sector-agnostic and this means your anaerobic digestion and biogas business could very well be eligible for a Tax Credit, which may reduce your Corporation Tax cost or receive a refund from HMRC.
Many anaerobic digestion, biogas and bioresources businesses don’t realise they are doing R&D and so miss out on crucial re-investment funds which could give them the cash boost they need to reach their next goals quicker.
Could My Anaerobic Digestion and Biogas Business Be Eligible?
Ask yourself these questions and if you answer yes to any of them, you may be eligible:
- Does my business engage in projects which seek to overcome uncertainty?
- Does my business spend time improving processes, products or services?
- Does my business invest time to discover ways to create new products, services or processes?
Remember, the UK Government has the desire to see local businesses become successful and thrive as world contenders and that’s one of the reasons why the R&D Tax Credit scheme exists.
Not all AD plant businesses have the expertise to assess their potential to clam back R&D spending, if so specialist anaerobic digestion and biogas R&D Tax experts are available to help maximise the claim your business rightfully deserves.
Which Industry Experts Perform R&D?
It is reassuring to know that research and development cuts across such a wide variety of industries and is found in small to large businesses. Yes, there are popular industries like Manufacturing, Professional, Scientific, Technical, Information and Communication sectors but there are lots more industries like bioresources which qualify – trust us.
It’s quite exciting to discover the scope of R&D activities and when you consider the fact that HMRC is quite vocal in expressing that many eligible businesses are not claiming R&D tax relief, there could be an opportunity for your business.
Is It Worth AD/ Biogas Plant Operators Pursuing R&D Tax Credits?
Claims experts at Available Grants™ have worked out that the average successful claim amount is about £47k when SME’s are paid out. Given that is a substantial figure, it does seem to be worth every penny spent in obtaining professional advice in order to use their special knowledge to maximise the claimable value. Anaerobic digestion and biogas businesses can certainly go through the process themselves and you can ask their accountant to provide a submission but you may want to consider why you should rather leave it to a specialist firm.
Are Biogas Plant Operators Eligible For R&D Claims?
Having consideration for the definition of R&D from the perspective of HMRC, your project(s) should seek out to challenge and overcome uncertainties and introduce new elements of knowledge. If you are not sure if this is what your project(s) achieved that's where an expert can help you.
What Sort Of Costs Fall Under The Biogas Plant Operators R&D Category?
Without going into the finer detail, biogas plant operator and anaerobic digestion industry claimants are often surprised that costs like wages, salaries, trials, prototypes, consumables etc are potentially eligible as part of the R&D costs. Experts in this field of taxation say that there are other eligible cost categories too. Some of the see advisors will also work on a No-Win No-Fee model so it need not cost you a penny if they aren’t successful with your claim.
Use An R&D Calculator To Find Out How Much You Might Be Able To Claim.
We provide a link to a calculator to help you get a sense of how much you may be eligible to claim back. Click Here To Use the Available Grants R&D Tax Credit Calculator….