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:
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.
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