What are R&D Tax Credits?

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What is R&D?

R&D is defined as Research and Development.  It is the process of taking the spark of an idea, and developing it into a new product or process. Researching, designing, creating prototypes and scale models and testing are all part of the R&D process.

What are R&D Tax Credits?

R&D tax credits are a tool used by the Government to stimulate and encourage innovation in industry. Regardless of your sector there is an opportunity to substantially reduce your corporation tax bill or receive a payable credit from HMRC based upon the time and costs incurred conducting Research and Development.

Small to Medium Size Enterprises (SME's) can recover up to 33% of the costs incurred under an R&D project.  That's £33 for every £100 spent on qualifying R&D activities.  To find out how much you could claim back, contact one of our specialists today.

What projects count as R&D - Photo of a neon question mark sign - Hamilton Wood and Company Bristol, Cambridge, Essex, Glasgow

What sectors conduct Research and Development (R&D)

Agriculture

Agriculture

Care Services

Care Services

Engineering

Engineering

Food and Drink

Food & Drink

Manufacturing

Manufacturing

motorsport

Motorsport

software and IT

Software & IT

Telecoms

Telecoms

R&D applies to almost all limited businesses in all industries in the UK. No matter the size of your business, you may qualify.  Businesses in the Agriculture, Care Services, Engineering, Food and Drink, Manufacturing, Motorsport, Software and Telecoms sectors are often conducting qualifying R&D and are often not aware. With the definition of R&D being much broader than you'd think, your day-to-day, routine activities might qualify.  Contact one of our experts today.

Project based R&D within your business

Market Research

Industry Research

Initial research while forming a basic understanding and developing knowledge of the subject matter.  Basic research is the first step of any R&D project. 

Applied Research

Applied Research

Before you can move into the 'hands-on' developmental stage, applied research is ore detailed research with a more focussed end goal.

Developmental R&D

Developmental R&D

This is where all the information gathered from prior research is applied. At this stage you are developing prototypes/mock-ups and trialling and testing.

R D Tax Experts - Research and Development Info Graphic by Hamilton Wood and Company

What sort of projects count as R&D?

A project where you are trying to improve a product or process, or create an entirely new product or process may qualify as an R&D project.

R&D doesn't always need to be the next big thing either.  It is possible to create a new version of old technology in a new way, and this could also be R&D.

Where your business is working to overcome the uncertainties or problems with a project and working on trial and error, this may indicate some of the work involved may be R&D.

R&D Tax Credits Swansea - Manager Looking at Project Board - Hamilton Wood and Company

The Benefits of R&D for your business...

Identifying and exploiting a competitive advantage in business is always a good idea.

Businesses investing in R&D often establish quicker and more profitable ways to do things, that in turn free up time and company resources.  This has the effect of creating a leaner more efficient business.

On a broader footing, Research and Development is critical for economic development and growth and is therefor incentivized by HM Government.

The Benefits of R&D for your business - Photo of neon sign - Hamilton Wood and Company Glasgow, Newcastle, Stoke on Trent

R&D Qualifying Costs

Staff Costs in R&D

Employee Costs

For employees working on an R&D project, you can claim their salaries, NI contributions and pension fund contributions.

Subcontractors in R&D

Subcontractors

You can claim some of the costs incurred by your business when you are using external subcontractors to help with an eligible R&D project.

Software Costs in R&D

Software

You can claim the  software licence fees that are used up in an eligible R&D activity as well as software that is  partially used in an R&D project.

Consumable Items in R&D

Consumables

You can claim for some or all of the materials and consumable items that are used up in a qualifying R&D project led by your company's activities. 

Regardless of whether your project was a success or not, the great news is that a proportion of the costs incurred can be recovered through a detailed R&D tax claim.

Innovation Process in the UK - Research and Development Tax Credits new

Why use an R&D Tax Credit Specialist?

R and D Tax Relief Experts - 100% Success Trophy

100% Claims Success

As leading specialists we work on R&D claims all day, every day. We are experts for a reason, we live it, and breath it.

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Safely Maximised Claim

Our specialists identify all areas to increase your award.  We help you get more of your money back quickly and safely.

Expert R & D Case Handling

Expertly Managed

We compile and complete your claim on an end-to-end basis. We present your claim in the best light possible to HMRC.

With HMRC increasingly 'spot-checking' industries and claims, we actively recommend you use a specialist to safeguard your claim, and to protect your company.

We are recognised as trusted advisors to members of the ICAEW and ACCA.

We work closely with accountants who do not specialise in this complex area of tax law.

Accountants are fantastic at what they do and we do not step on their toes.  Our role is to safely enhance your claim and we then pass our distilled figures to your accountant.  

Our relationship is similar to the relationship between a GP and a specialists.  A GP will give you general advice but will often refer you to a specialist to be certain.

Hamilton Wood & Company are an award-winning team who work hard to help improve your company's bottom line.

Research and Development specialists at a computer - Hamilton Wood & Company London, Manchester

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