Close form

One Minute Guide to R&D

26 April 2019
Slava Knazevs
Digital & Tech, Reducing Tax, Accounting & Compliance

Are you missing out on Research and Development (R&D) tax relief?

R&D tax relief is a government tax incentive designed to encourage companies to invest in research & development. R&D isn’t just incurred by software or pharmaceutical companies. Surprisingly thousands of businesses are missing out on this valuable relief as they are unaware that the relief could be applicable to them.

Any company that spends money developing new products, processes or services or enhancing existing ones could be eligible for R&D tax relief. A total of £3.5 billion was claimed in R&D tax credits by innovative UK businesses in 2016-17 alone.

How it works

If you’re spending money on qualifying innovation, you can make an R&D tax relief claim. The relief can reduce your Corporation tax bill or the company can claim payable cash credit.

Who is eligible?

R&D tax relief is not limited to certain sectors – any company in any industry may be eligible for R&D tax relief as long as they fit the following criteria:

  • They are incorporated in UK
  • They seek to resolve technological uncertainty
  • The company must have actually spent money building a technology solution

What projects are likely to qualify?

The scope for identifying R&D is huge – in fact, it exists in every single sector. If you have a project where the outcome is not certain, as the knowledge of how it has to be done (or even if this is possible) is not commonplace, then this could be R&D. Some examples include:

  • Identifying and developing improvements in processes
  • Developing a new product, or adapting an existing product
  • Developing or adapting equipment to improve efficiency or sustainability
  • Creating new environmentally friendly methods and sustainable technology
  • New data analysis algorithms
  • Resolving conflicts between hardware and software
  • Solving a problem with a previously untried technique

Benefits of R&D relief claim

If eligible, you can claim relief for your last two completed accounting periods with qualifying expenditure identified by us enhanced by 130%.

When this enhancement is deducted from your profits it will reduce your tax bill. If it creates a loss then this can be carried back to a previous year’s profit to get a tax refund, carried forward to utilise against future profits or alternatively cashed in to get a cash credit .

If you think you might have a possible Research & Development claim then get in touch with your account manager or Darren. Our fees are computed on a no win no fee basis so even if you are uncertain about whether a  project qualifies give us a call- you have nothing to lose and potentially a substantial tax saving or rebate to enjoy! We have a 100% success rate with qualifying claims.

The content in this blog is correct as at 26th April 2019. See terms and conditions.

Similar articles

boats
29 April 2022

Tax trap! Is your estate worth between £2 and £3 million? If so you could lose valuable allowances

We deal with many affluent clients and it is interesting how attitudes to inheritance tax can vary significantly, even between people with similar levels of wealth. Some say that they have paid taxes all their lives – on their income, asset sales, property purchases – and begrudge paying the treasury even one more pound in inheritance tax when they pass. Others feel that it will be someone else’s problem, so why should they worry. Most people are somewhere in the middle.

Probate
22 April 2022

Is Probate Difficult to do Yourself?

This is a question that gets asked a lot. The simple answer is – it depends! The preparation of papers to obtain the grant of probate or grant of representation is the responsibility of the executors if there is a valid will, or if the deceased died intestate it will be the responsibility of the…

graph
6 April 2022

Growing your business without the financials!

In order to make big profits you need to know what are the key numbers in your business. Well it’s not the cashflow, budget, profit and loss or bank balance……we are talking about non-financial figures that help the business to grow……CONVERSION RATES!

Our 3 step risk-free guarantee puts your mind at rest and keeps us on our toes!

FIND OUT MORE
byrant house at night office

Book Your Discovery Meeting

Are you hungry for success? If you run a small to medium size business and you want to grow your sales, increase profitability and pay less tax then you have come to the right place.