R&D Tax Credits Explained
What Are They? Who is Eligible?

It's not all about 'people wearing white coats in labs' ...

Research and development (R&D) tax credits are a valuable government tax relief that rewards not only large UK companies but SMEs for investing in innovation and can be claimed as a tax credit at the equivalent of up to 33p for every £1 of qualifying expenditure

You don't have to be developing new products, processes or services; if you're enhancing existing ones, then the chances are you'll be eligible for a cash payment and/or Corporation Tax reduction.


Are you eligible to claim R&D Tax Credits?

R&D relief is eligible on any project that qualifies as part of a specific project that makes an advance in science or technology. It can even be claimed on unsuccessful projects.

What is eligible expenditure?

R&D costs can include: Staff costs, External workers, Sub-contractors, Software & Consumables

Can you work with my accountant?

Yes – we have worked with many Accountants over the years.

Can I claim for R&D even though I’m loss making?

Loss making companies can claim R&D tax credits, cash back from HMRC.

  • A loss making SME can secure a benefit between 14.5% and 33% of its R&D expenditure.
  • A loss making Large company or subsidised project can secure a benefit of 9.7% of its R&D expenditure.
  • Loss making SME companies also have the option of not surrendering the R&D loss but instead carrying the loss forward/backwards against profits.
My accountant said I am not eligible for R&D tax credits.

That may well be the case. However, as R&D Tax Specialists, we can often find genuine eligibility where a non-specialist (most Accountants) cannot. Using sub-contractors

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