Research & Development Tax Credits

Research & Development Tax Credits

The R&D tax credit scheme is a Government incentive designed to encourage innovation and increased spending on R&D activities by companies operating in the UK. Companies that are carrying out R&D activities may claim an enhanced tax deduction for the qualifying expenditure they incur. SME companies receive the most benefit of R&D tax relief, but recent changes to the rules has significantly increased the scope and value for large companies as well.

According to HM Revenue & Customs (“HMRC”), since being first introduced in 2000, over £7 billion of R&D tax relief has been claimed by SME and large companies. However, many companies are often unaware that what they are doing qualifies as R&D and have missed claims for the enhanced tax relief.

If your company carries out research and development then you may be eligible for R&D tax credits, which can significantly reduce your tax bill. Companies with no corporation tax liability may swap losses with HMRC for a cash tax credit! The scheme has never provided as substantial tax savings as it does today, with up to 33.35% of a company’s R&D spend being available as a cash repayment from HMRC.

To claim R&D tax relief, you don’t need to be scientists in laboratories. A company that spends time and money trying to improve products, services, processes or systems through a technological or scientific advance that would not be easily deductible by a competent professional in their field, is likely to be eligible.

Our specialist team have had great success helping a wide range of companies identify and make claims for R&D tax relief. Our team are able to identify qualifying R&D activities and ensure all qualifying costs are captured to maximise a claim. We prepare a detailed R&D report to support the claim for tax relief, which is in a format we have agreed with HMRC. Our expert knowledge and experience of R&D claims has resulted in our team securing significant cash repayments and tax savings for our clients, with a 100% success rate to date.

If you would like to find out more about R&D tax credits, please click here to download our guide to R&D or contact Mary McDonagh or Matt Jeffery