R&D Tax Credits

W H A T   A R E   R & D   T A X   C R E D I T S   ?

Small and medium sized enterprises (SME) R&D Relief:

R&D tax credits have been around for over 15 years yet by HMRC's own statistics the relief is not being claimed as expected, especially in the SME sector. R&D tax relief allows companies to:

  • deduct an extra 130% of their qualifying costs from their yearly profit, as well as the normal 100% deduction, to make a total 230% deduction
  • claim a tax credit if the company is loss making, worth up to 14.5% of the surrenderable loss

If your company carries out research and development then you may be eligible for R&D tax credits. R&D tax credits are a government incentive designed to reward UK companies for investing in innovation. If you’re making a claim for the first time, you can typically claim R&D tax relief for your last two completed accounting periods.

There are three main types of tax benefit that arise from a successful claim for R&D Tax Relief, these are:

  • A payable cash credit
  • A rebate of corporation tax
  • An enhanced deduction that can be carried forward

Click here for HMRC’s guidelines

A R E   Y O U   E L I G I B L E   ?

You can claim SME R&D relief if you’re a SME with:

  • Less than 500 staff
  • A turnover of under €100m or a balance sheet total under €86m

A company in any sector can potentially claim R&D tax credits, the key point is whether there are qualifying R&D activities being undertaken. The scope for identifying R&D is huge – in fact, it exists in every single sector. The scheme is only for Limited Companies (not partnerships, charities or sole traders) that are subject to Corporation Tax.

The HMRC R&D criteria are purposefully broad. Whatever size or sector, if your company is taking a risk by attempting to ‘resolve scientific or technological uncertainties’ then you may be carrying out qualifying activity. This could include developing new products, processes or services; or enhancing existing ones

The project in question must relate to your company’s trade - either an existing one, or one that you intend to start up based on the results of the R&D. To get R&D relief you need to explain how a project:

  • Looked for an advance in science and technology
  • Had to overcome uncertainty
  • Tried to overcome this uncertainty
  • Could not be easily worked out by a professional in the field

Click here to find out more about eligibility

H O W   A R E   W E   D I F F E R E N T   &   H O W   D O   W E   W O R K   ?

The industry completing your R&D tax credits typically charge between a 20% - 25% success fee and this tends to discount the smaller SME claim as it isn’t commercially viable for them to write the less complicated claim on your behalf. We are fundamentally different and are disrupting the R&D tax credits market for SME’s by providing:

  • Access to a unique, automated piece of software
  • A one to one Advisor who will guide you through the process
  • A report at the end of the process so you can view the claim PRIOR to purchasing the report
  • An open and transparent process at a significantly reduced cost

We provide a simple solution to the complicated world of claiming R&D tax credits. An initial conversation will give us an idea on if you are eligible to make a claim. Get in touch today to start the process!

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