Unlock an additional cash boost for your business.
We’ll access, create and submit your R&D claim to help you receive a generous corporation tax deduction, or a cash refund from HMRC. Giving you more freedom to fulfil your business ambitions. If you want more information on our R&D services, please call us on 0203 514 3215.
Keep on innovating
Innovation doesn’t happen overnight. It’s why the UK Government offers tax relief for companies who are pushing the boundaries in their field. Claims for R&D enhanced deductions and tax credits are made as part of your annual corporation tax return.
In its present form, under the SME scheme, R&D tax credits allow small companies to deduct 130% of their qualifying costs from any profits. It’s also possible to “cash in” losses arising from enhanced R&D expenditure for a payable tax credit.
Put simply, if you’re profitable and paying corporation tax, then for each £1 spent on R&D you should get a £1.30 deduction for tax purposes. That means you’re effectively getting a 24.7% tax relief on R&D expenditure.
If your business is loss-making then you can claim an amount equivalent to 14.5p in the £1 from HMRC. So for each £1 spent on R&D, you’ll actually receive 33.35p back from the taxman
If your business is using subcontractors rather than employees for R&D, the relief may be lower, but it will still be worth talking to us about a claim.
But many companies are eligible for this tax relief without knowing. In fact, it’s estimated that around 80% of eligible companies have either not claimed or have under-claimed. That’s millions of pounds that could be claimed and utilised to fuel growth.
Who can claim R&D tax relief?
To claim R&D tax relief under the SME scheme you must have:
- less than 500 full-time staff
- a turnover of less than €100 million, or gross assets under €86m on the balance sheet
There are many industries where qualifying R&D activities may be undertaken. For example; pharmaceuticals, life sciences, software and technology, automotive, engineering and manufacturing. But just because your business does not fall into these categories, does not mean it’s not eligible.
Many businesses do not realise the range of activities and projects that could qualify for R&D relief. For example:
- unsuccessful and internal projects
- developing a new product or appreciably improving an existing product
- non-product related expenditure (e.g. on services and processes)
Ready to get started?
R&D is incredibly complex and can be time consuming. To be successful, we’ll need to do a deep dive into your company to truly understand what you’re eligible for. Our team are experts in R&D – and understand all the recent changes. So get in touch and we’ll let you know if you’re eligible.
To start your journey with us, get in touch below, and one of our specialists will arrange an introductory consultation.
Who can claim R&D tax relief?
To claim R&D tax relief under the SME scheme you must have:
- less than 500 full-time staff
- a turnover of less than €100 million, or gross assets under €86m on the balance sheet
If you’re profitable and paying corporation tax...
…then for each £1 spent on R&D you should get a £1.30 deduction for tax purposes. That means you’re effectively getting a 24.7% tax relief on R&D expenditure.
What projects and activities qualify for R&D relief?
Many businesses do not realise the range of activities and projects that could qualify for R&D relief. For example:
- unsuccessful and internal projects
- developing a new product or appreciably improving an existing product
- non-product related expenditure (e.g. on services and processes)
For more information about our R&D service, click our document below.
Latest R&D Insights
How Gravita Successfully Defended a Client’s R&D Tax Relief Claim in an HMRC Investigation
Written by Tax Partner, Dion Laycock Gravita’s team, led by Dion Laycock, Head of Tax Investigations, used their expertise in R&D tax to successfully defend
Webinar recording: R&D reinvented: Unlocking the power of innovation in the tech sector – Part Two
Gravita Corporate Tax Director, Kate Greenhough, and Gravita R&D Associate Director, Pieres Flowers, presented a webinar on R&D reinvented: Unlocking the power of innovation in
R&D reinvented: Unlocking the power of innovation in the tech sector – Part Two
On behalf of our Research and Development (R&D) tax specialist team, we are pleased to invite you to our informative tax webinar that promises to
More services from Tax
“With regular changes to the tax landscape, including complex regimes and greater emphasis on business responsibilities, we’re here to alleviate your stress. We love getting to grips with knotty tax problems and providing you with useful and practical advice.”
PARMINDER CHATTA
Partner
Let’s work together on your growth journey
We work with forward-thinking businesses and entrepreneurs who are going places. Let us join you on your journey.
What makes us different
01
We have high calibre experts. Our team has years of experience and academic backgrounds meaning you’re dealing with seasoned professionals.
02
We’re tech-enabled, but human-led. There are no robots here, just our talented team who use tech to work more efficiently with you.
03
We look beyond the balance sheet. We don’t just do the job in hand, we’ll actively work with you and offer advice to help you grow.
04
We cover everything in the world of accounting. Ranging from everyday financial worries to complex business challenges.
05
We can grow as you grow. Our service is designed so you can scale our team up or down to suit your needs.
06
We understand time is money. It’s why we provide real-time financial data which can help you capitalise on opportunities, plan better and grow faster.
