If your team is working on creating or improving upon your business, it’s likely that you are doing research and development (R&D). The R&D Tax credit provides a massive cost saving opportunity that you do not want to let slip away. Lucky for you, Journyx and Leyton have partnered up to provide all the tools and resources you need to maximize your claim to the R&D tax credit.

What is the R&D tax credit?

As most business leaders know, innovation—while crucial to economic growth as well as getting a leg up on your competition—is often faced with technical and financial hurdles.

That’s why federal and state governments in the U.S., and many other countries around the world, offer valuable tax incentives for companies undertaking R&D initiatives.

The R&D tax credit is a government-sponsored incentive that rewards businesses for investment in research. It allows companies to reduce their tax bill based on a proportion of their R&D expenditure, which is generally comprised of wages for research staff and contract costs for commissioned projects.

Who is eligible for the R&D tax credit?

The tax credit is available to any business—regardless of industry, size, or revenue—that attempts to develop new, improved, or technologically advanced products or trade processes, or that participates in activities to improve upon the performance, functionality, reliability, or quality of existing products or trade processes.

Just some of the many, many examples of qualifying activities include:

Pharmaceuticals
  • Drug research or clinical research and development
  • Developing prototypes, drug delivery systems, or methods to further improve shelf life
Financial Services
  • Developing IT systems, including software to keep up with current trends and cybersecurity mobile banking apps, and implementation of enterprise resource planning (ERP) systems
Software
  • Designing, enhancing, and implementing software applications
  • Simulating and testing software functionality and performance
Construction
  • Designing heating, ventilation, and air conditioning (HVAC) systems
  • Exploring construction techniques, equipment, and electrical systems
Manufacturing
  • Researching new fabrication techniques
  • Creating specialized tools or engineering processes to optimize supply chain
Architecture
  • Developing energy-efficient features for residential or commercial structures
Agriculture
  • Researching genetically modified organisms (GMOs)
  • Developing new irrigation methods or yield optimization strategies

Time Tracking for R&D

The largest portion of the qualifying costs that can be claimed for your R&D tax credit is the cost of your employees’ and sub-contractors’ time and effort they spend on your R&D projects and activities.

Journyx’s leading project time tracking software provides a user-friendly, web and mobile time entry solution for easily and accurately collecting the time information and documentation that is required to help support your R&D tax credit claim.

How Leyton Can Help

The claims process is relatively complex, which can often result in businesses not claiming to their full potential. Work that qualifies for R&D tax relief must be part of a project which aims to make an advance in its field. The project may involve researching or developing a new process, product, or service or improving on an existing one.

The R&D tax experts at Leyton can help you identify latent opportunities and simplify the claims process. Their technical expertise from multi-disciplinary teams will efficiently uncover the R&D in your business.

Click here to contact Leyton if you have questions about the R&D tax credit or want to more information about how Leyton can help reduce your tax liability and improve your business’s performance.

 

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