R&D Tax Credits

The UK Government recognises that encouraging innovation is a vital component in a strategy for improving the UK’s productivity, performance and competitiveness. As a result, the research and development (R&D) incentives for both small and medium size enterprises (SMEs) and large companies have been enhanced in recent years to encourage and reward greater innovation in the UK

The Relief

The R&D revenue relief increases the amount a company can obtain tax relief on to more than the normal 100% revenue deduction. This relief is 230% for expenditure incurred by a SME on or after 1 April 2015 (previously 225%). Large companies are subject to a different regime not considered here.

Alternatively a SME may claim a payable R&D tax credit for an accounting period in which it has a surrenderable loss. For expenditure incurred on or after 1 April 2014 the amount of payable tax credit that a company is entitled to for an accounting period is 14.5% of the surrenderable loss for that period. For accounting periods ending on or after 1 April 2012 the R&D credit is no longer restricted to the PAYE/NIC liabilities of the company.

How we can help

Most of our clients make claims under this scheme.  From helping clients identify their qualifying activities and expenditure, to developing a methodology for future claims and negotiating agreement with HMRC, our expert team ensure that our clients receive their maximum incentive which is robust to HMRC scrutiny.

Unlike most accountancy firms, we charge on a fee basis rather than a percentage of the refund received.  This generally means our clients pay considerably less for our services.

R&D Tax Credits: What you need to know, watch our video