R&D TAX CREDITS

Research & Development (R&D) tax credits are a government tax incentive set up to give innovative companies money back for any costs they have incurred in this area of their business.

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Essentially, they are the Government’s way of rewarding businesses that are developing new, or appreciably improving existing, products, processes, systems and materials — and thereby increasing the country’s wealth creation capacity.

HM Revenue & Customs states the following: “Your company or organisation can only claim for R&D Relief if an R&D project seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty.”

R&D Tax Credits apply to businesses that are liable for Corporation Tax. They can help to reduce a corporation tax bill or can be claimed as a cash sum paid back to a company by HM Revenue & Customs, due to an over-payment of tax.

Types of qualifying R&D expenditure are typically staff costs, software, utility bills, and any subcontracted work and materials. These R&D costs can be accelerated up to 230%.

Missed opportunity

​Research & Development tax relief can also provide a valuable cash injection to companies of all sizes that have not paid (or are not paying) Corporation Tax, through the R&D tax credit system.  The purpose of tax credits is to incentivise companies that are not necessarily in a profitable position to take the risks inherent in innovation.

However, many companies, due to a lack of awareness or expertise, are not exploring their claim entitlement and are losing out financially as a result.  This can often be to the tune of tens, or even hundreds of thousands of pounds.

Based on figures from HM Revenue & Customs, only a fraction of businesses in the UK are making claims for R&D.  Just 15,930 claims were made in the 2112/2013 financial year by around 2.8 million active limited companies.

We are keen to raise awareness of this area of tax and to ensure that companies undertaking R&D receive the appropriate level of tax relief.

Benefits of our service

​​We provide a professional, multi-disciplined service:

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  • Accurate and robust tax reports

  • Maximum R&D tax savings

  • Proactive and personal

Crucially, we do not require any upfront fees.

 

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