Claiming R&D Tax Credits

claiming RD Tax Credits

A guide simple to claiming Research and Development tax relief for small and medium-sized enterprises (SME’s)

In this guide, we will cover the basics when it comes to making an R&D Tax Credit claim.

Executive summary

SME R&D Tax relief is an advantageous tax benefit for UK limited companies investing in striving to achieve innovation in science and/or technology in a new and appreciably improved way. This incentive allows UK companies to:

  • Deduct a total of 230% of the eligible business costs against your corporation tax figure
  • Where your business is making a loss, claim an almost immediate tax credit of 14.5% of the surrenderable loss

Claiming R&D tax relief can be a complex affair however, our specialists will help you distil important aspects of your historic project spend into a detailed report recognised and accepted by HMRC.

Our experts will help identify where the eligible project spend resides, and whether the project is a true advance. We will work with you to make clear what your company has been doing and how this was a true R&D project.

Projects that may be eligible to claim

Where your company has invested in Improving or creating new:

  • Products
  • Services
  • Systems
  • Devices etc…

…then you may be eligible to make a claim and our specialists will be able to make the process quick and easy for you.

To make a claim you need to have been:

Working to achieve an advance in technology and/or science

Working to resolve or overcome a degree of uncertainty with the project e.g. working on trial and error, gut feelings, iterations etc.

Trying to move your field/industry forward in a way that goes beyond the publicly available level of knowledge.

The two different types of R&D tax relief

Currently there are two distinct versions of the R&D incentive available to UK companies and they are split by company size and turnover.

SME R&D

  • Your company has less than 500 employees
  • Your company turnover is less than 100 million euros or with a balance sheet under 86 million euros

There are other factors to consider when trying to determine if your company is eligible for this scheme such as if your company is part of a group and the share options of the controlling entities.

Research and Development Expenditure Credit (RDEC)

The large company R&D scheme has been replaced by RDEC and makes the incentive more accessible to larger companies.

Larger companies employing over 500 staff can claim RDEC when they have been investing in qualifying business projects.

RDEC can also be claimed by SME’s and large companies who have been subcontracted to undertake R&D activities by a large company.

From the 1st January 2018 the percentage tax relief that you can claim via RDEC increased to 12% of eligible business costs used in a project.

Claiming R&D Tax Credits

Your R&D Tax Claim - Get started now banner

Firstly, to see if you may be able to claim, use our quick and easy R&D Tax Credit calculator, simply click the banner above to 'get started'

To streamline and safely optimise your R&D tax credit award, contact one of our specialists on 0161 791 1401 or request a call back by using our contact form – click here to start your claim.

Our award-winning company minimizes your time in our process. Our average client award is now over £45,000 and the funds can be back in your business in less than 6-9 weeks.

What’s more, our low-fee is only due when confirmation that funds are being made available to your company is received.

We work on a 100% success only basis and so your company is always in a cash-positive position. In other words, we work on a no-win-no-fee basis.

Contact a specialist now and we will streamline the process of making your claim.