About R&D Tax Credits

If your company carries out research and development then you may be eligible for R&D tax credits, which can reduce your tax bill or increase taxable losses. If your company makes a loss on qualifying R&D expenditure, you can choose to ‘surrender’ or ‘cash-in’ losses that derive from an HMRC claim.

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What kind of activity qualifies?

In a nutshell, you must be able to demonstrate to HMRC that the product or service you’re planning to include in your claim is truly innovative and, at a technological level, an advance on what’s currently available in the market.

Are you eligible?

A lot more companies are eligible for the UK Government's R&D tax credits scheme to encourage and reward innovation than you might think. In a nutshell, you must be able to demonstrate to HMRC that the product or service you’re planning to include in your claim is truly innovative and, at a technological level, an advance on what’s currently available in the market.

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Costs that count

For eligible projects, ‘costs’ are the money spent on salaries, externally provided workers, subcontractors, software, utilities and materials ‘consumed or transformed’, such as such as chemicals, materials, batteries and certain forms of tooling.  Prototyping and independent research costs may also qualify for R&D relief, however Capital expenditure does not qualify under this scheme.

How much can you claim?

The SME scheme has a rate of R&D expenditure tax relief as high as 230%, while RDEC (the research and development expenditure credit) is worth 12% of your qualifying R&D expenditure.

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Making a claim

HMRC’s guidance on claiming R&D tax credits, which runs to several hundred pages, puts most businesses off going it alone. We’re here to make the process simple, ensuring the best results, time, after time.

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Jumpstart your R&D tax credits…Call us on 0844 967 2626