Research & Development (R&D)

Research and Development (R&D) reliefs support companies that work on innovative projects in science and technology. It can be claimed by a range of companies that seek to research or develop an advance in their field. It can even be claimed on unsuccessful projects.

We can produce or assist you with research and development tax claims, where we can help with complex assessments, advice and detailed analysis.

Are you a research or technology company?

The process:

• Initial qualification - identifying the scope of the R & D tax credits claim and any specific issues which impact the claim.

• Project narratives - Establish the baseline where the advance in knowledge or capability in a field of science or technology is sought.

• Cost gathering - eligible costs are those that relate to the activity or resolving technological uncertainty, both directly and for some costs indirectly, the cost types that can be claimed are defined by legislation.

• Benefit calculation & claim filing - internal compliance check. Then the accountancy handling of the claim, including filing the claim correctly with the supporting information and technical justification.

• Payment - depending on the nature of the benefit, scheme, and HMRC workload they process and pay the claim in 4-16 weeks.

  
  

Did you know that R&D is treated generously for tax purposes?

Costs you can claim:

• Staff costs (dividend payments are not claimable)

• Subcontractors (restricted to 65%)

• Externally provided workers

• Consumables

• Software

Small and medium sized enterprises (SME) R & D relief:

• less than 500 staff

• turnover of under 100 million euros or a balance sheet total under 86 million euros

SME R&D relief allows companies to:

• deduct an extra 130% of their qualifying costs from their yearly profit, as well as the normal 100% deduction, to make a total 230% deduction.

• claim a tax credit if the company is loss making, worth up to 14.5% of the available loss.

  
  

Research and Development Expenditure Credit (RDEC):

Large companies can claim RDEC for working on R & D projects.

The RDEC is a tax credit which is 13% of your qualifying R & D expenditure.

Please see Alan Crouch's page who is a reliable contact from the RandD Tax team who states that the most enjoyable part of his work is implementing a no-nonsense, honest-to-goodness service and seeing his clients and their company’s really flourish and grow. He also offers live/networking events where he presents via LinkedIn Live, this helps clients identify if any of the activities qualify.

For additional information to see if your development projects qualify, please look out for our blog posts relating to R&D.

Get in touch with our team on 01480 300945 or fill out the form below

We welcome your enquiry. Contact us so we can help you along the way.