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.
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“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
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