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What is R&D tax relief and tax credits?

Research and development tax relief and tax credits reward companies for taking risks to be at the forefront of their respective sectors. The relief applies to any company in the UK who is pushing the boundaries with their products, designs, processes, systems, devices or methods.

There are nearly 5.5 million companies in the UK. According to HMRC statistics only 48,635 R&D claims were received in the 2018 tax year (0.8% of companies!) which shows it is still an area that is often overlooked with directors wrongly thinking innovation or creativity is simply ‘what we do’.

R&D tax claims are extremely important in a businesses cash flow forecasting as they are able to claim as much as 33% of qualifying costs back every single year on projects which push the boundaries within a sector. To put this in context, having costs involved with working to create a competitive edge of just £50,000 could mean a repayment of over £15,000 back to the company.

To check eligibility, just leave your name and email address, and one of the team will be in touch with you.

TAX RELIEF AND TAX CREDITS

Who Can Claim?

The biggest misconception is what is eligible for R&D tax relief – it’s not just for laboratories and pharmaceuticals. Yes, Scientific research is eligible, but so are activities such as:

  • Software development

  • Architecture

  • Automation

  • Development of innovative recipes/formulas

  • Development of new materials

  • Improved processes

  • Development of new products

  • Engineering

R&D TAX RELIEF LAWS

Is it just specific fields that can claim?

Generally anything that pushes the boundaries within any given field will have a basis in R&D.

The tax laws around R&D tax relief are technically very complicated, and the criteria for eligibility can be ambiguous. In order to get the largest tax relief return, and the lowest level of risk, you need to have an expert on your side. Our R&D staff work full time on R&D and each of our clients has direct access to a partner at all times which is one of the reasons we are able to claim back £10m + every year with a 100% success rate.

The way we work mitigates all risk for our clients and with our contingent fee basis a meeting to discuss does not cost you anything, there really is nothing to lose and potentially a lot to gain.

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