R&D tax credits

Research & Development (R&D) tax relief is an incentive available to UK limited companies which encourages investment in innovation. R&D tax credits can reduce a company’s tax liability or, if a company is not in profit, provide a payable cash refund.

For tax purposes, the definition of R&D is purposefully broad. The relief is ultimately geared towards problem solving businesses – those which can demonstrate they’re making ‘appreciable improvements’ or overcoming technological/scientific uncertainties.

If you’re improving processes, bringing new products and services to market, increasing efficiencies or solving problems for customers, there’s a strong chance you could be eligible for the relief.

As it stands, the R&D tax credits are one of the biggest forms of tax relief available to SMEs, providing a 130% uplift on qualifying costs.

Claiming R&D tax credits

R&D tax relief can provide an important source of funding through cash reimbursement or tax deduction for companies developing products, processes and services. It’s one of the biggest tax reliefs available to SMEs and can be worth up to 33.35% of a company’s R&D expenditure.

The good news is that R&D claims can be made retrospectively.  You can file a retrospective claim for any R&D activity carried out in the last 2 years.

Who and what is eligible to claim R&D tax relief?

Here are some examples of companies that we’ve helped with R&D tax claims.  These research and development tax credit examples will help you understand how R&D Credits are calculated, and what it means to you and your business. 

You may be surprised to find out the wide range of R&D qualifying expenditure that is eligible for R&D tax credits. Even failed attempts to improve products or processes can still count as R&D qualifying expenditure.

What do I do next?

Want to know whether your work qualifies for R&D tax relief?  A quick chat to us will clarify matters. There is no fee for this initial advice and there is no obligation to pursue a claim with us.

We offer a success-based fee so you pay us according to the level of return we achieve for you. Claims can go back two tax years so the quicker you act, the more benefit you can achieve.