R&D tax claims

Research & Development tax relief

Among the various ways that we support clients in science and technology, research and development (R&D) tax credit claims are among the most important. 

Many individual projects qualify for R&D relief, and it can make a huge difference to the profitability and viability of startups and established firms alike. 

How does R&D tax relief work?

An R&D tax credit is a cash payment from the Government to encourage companies to research and innovate in their trade. It works by giving you a tax credit on a portion of your qualifying R&D costs.

An R&D tax credit is usually compiled by a tax professional with insight into a range of industries. They will first calculate your eligible R&D expenditure and apply the RDEC or SME Tax Relief enhancement. This figure is then deducted from your corporation tax bill. 

HMRC requires detailed information about your project to approve your claim, and may open an inquiry – a tax expert can help you here, too. 

Who is eligible for R&D tax credits?

Eligibility for R&D Tax Relief is broad and includes many sectors. The main constraint on what projects count is that they must aim to make advancements in science and technology, making certain industries stand out as potential beneficiaries.

Science and tech

Who’s better suited to do R&D in science and technology than a company dealing with this every day? Projects must relate to the claimant’s trade, making R&D tax relief a no-brainer.

Startups 

Companies with something new to contribute to science and technology can benefit from R&D tax credits. It’s also a great way to maintain a positive cashflow in the early stages of business. 

Construction

Creating new materials; developing new technology; adapting equipment or processes; creating new mechanical and electrical systems – construction businesses can make R&D claims for various projects. 

Qualifying activity

You can claim R&D tax credits on revenue expenditure (i.e. day-to-day operational costs). Revenue expenditure includes:

• staffing costs (gross salaries, employer NI and employer pension contributions)
• subcontracted R&D
• consumables
• software
• payments to subjects of clinical trials.

How can you benefit from R&D tax relief?

R&D tax credits benefit thousands of companies annually and could benefit your organisation, too.

Allowing more investment into innovation

R&D tax credits allow you to put more into your innovative ideas by giving you back money that you can reinvest in even more ambitious projects.

Funding business growth  

Qualifying for R&D tax credits means innovations that improve your business are more cost-effective to do, contributing to your business’s financial health and growth. 

Strengthening your reputation

By being approved for R&D tax credits and reinvesting the money into further innovation, you can improve your reputation as a company at the forefront of advanced processes and technological advancements. 

Find out what an R&D claim is worth to your business

Successfully claiming R&D tax credits is a long and arduous process, but it’s one that we can help you tackle. We don’t take a share of the claim – we’re here to help your business develop. Get in touch to learn more.