R&D Tax Relief
Research and Development (R&D) tax relief is designed to provide financial support to companies engaged in innovation and the development of new processes, products and services.
If your project aligns with the established criteria for R&D, you could potentially claim R&D Tax Credits.
Outlined below is an overview of the criteria as well as the assorted types of reliefs that might be accessible.
Projects eligible for R&D Tax Relief are aimed at making significant strides in scientific or technological advancements.
It is important to note that this relief is not applicable if the innovation pertains to:
- Arts
- Humanities
- Social sciences, including economics
Furthermore, the project should be relevant to your company’s trade, whether it’s an existing venture or a prospective one resulting from the R&D findings.
In order to make a successful claim, it’s necessary to elaborate on how the project:
- Strived for progress within its domain
- Faced and overcame scientific or technological uncertainties
- Endeavoured to tackle challenges that professionals in the field couldn’t readily resolve
R&D Tax Reliefs are available for Small and Medium Sized Enterprises (SME’s) with an R&D Expenditure Credit (RDEC) available for large companies.
An SME is defined as a company with a:
- Staff count of under 500
- Turnover of less than €100m or the balance sheet total of below €86m
SME’s can deduct an additional 86% of qualifying expenditure in addition to the normal 100% deduction from their annual profits.
Large companies claim an expenditure credit on qualifying expenditure.
From 8 August 2023 HMRC require an additional information form to be submitted in advance of an R&D claim.
Please contact us if you need support or want us to instigate an R&D Tax claim.
