Research and Development Tax Relief

Research and Development tax relief can improve your company’s cash flow by reducing its tax liability and, in some cases, by obtaining an additional tax repayment (R&D tax credit). R&D tax relief is only available for companies and there are two different research &development tax relief schemes depending on the size of your company. The scheme outlined below is available for small and medium-sized companies.

What tax relief is available?

R&D tax relief can be generally claimed on:

  • the cost of employing staff who are directly or actively engaged in carrying out the research and development
  • the cost of the materials that are used in the research and development
  • on payments made to subcontractors that are assisting with the research and development
  • Some software costs

​A business can claim relief in one of two ways. It can set 230%  of its qualifying expenditure against taxable profits; that is, it can reduce the amount of the profits on which it has to pay tax by an additional 130% of the qualifying R&D spend.  ​Where a company is making a loss, the company can surrender the loss for R&D tax credits.

How can we help?

  • Considering all periods where claims can still be made
  • Identifying all potentially qualifying R&D activities or projects
  • Identifying the qualifying expenditure related to those activities or projects
  • Either collating a detailed R&D claim on your behalf, or helping you to prepare an in-house claim
  • Submitting the claim for your company and liaising with HMRC to ensure a quick repayment or rebate of tax
  • Providing training for your staff, along with data collection templates, to simplify claims for future R&D activities and projects

Ready to make a claim? Please call us on 01733808075 for further information.