Research & Development Tax Relief

“If an R&D project seeks to achieve an advance in overall knowledge or capability in a field of science or technology”*, you may be able to claim Corporation Tax relief of up to 200%.

R&D tax relief is a Government incentive that rewards companies developing new technology, whether they have made a profit or a loss. If you’ve overpaid tax in the previous two years, you can claim it back as cash.

The definition of R&D is quite broad, and could include the development of new and improved products, processes, services or systems. R&D tax relief effectively increases the value of your development spend by a multiplying percentage; this reduces your declared profit and likewise, the tax on that profit.

Who can claim?

You can claim R&D relief if your company is liable for Corporation Tax and if your project meets certain criteria. The relief applies to work that creates an advance in technology or science – for example, making something more efficient, reducing its cost or improving its environmental impact.

You will be able to claim for revenue expenditure on:

  • Employee costs
  • Staff providers
  • Materials
  • Payments to clinical trials volunteers
  • Utilities used directly in carrying out R&D
  • Software.

How we can help

Many clients are unsure of their eligibility for R&D tax relief – and a surprisingly high number of tax claims are rejected because they are submitted by accountants who don’t have an in-depth understanding of this specialist area.

Claims can be complex and must be submitted within two years of your end of year. We can help you identify all activities that could qualify and ensure that the submission is accurate and all eligible work is included - so that you receive the highest level of tax relief that you are entitled to.

Successful R&D tax claims

For one of our clients, a pathology laboratory, we re-submitted a claim that had previously been submitted incorrectly. The result? £100k in cash benefits to the business. Read the full case study. 

We submitted another R&D claim for another client, an organisation that provides online learning and business development. They received a cash benefit of £200K. Read the full case study.

*Source HMRC

We have considerable knowledge of the processes and legislation surrounding R&D tax claims. If you’re unsure of your eligibility for relief, then speak to one of our specialists.