We help UK-based businesses unlock the potential of Research and Development (R&D) Tax Credits.

R&D Relief for SMEs:
SMEs can claim an enhanced tax deduction of 230% on qualifying R&D expenditure. This means that for every £100 spent on eligible R&D activities, SMEs can reduce their taxable profits by an additional £130, resulting in a significant reduction in their overall tax liability. Moreover, if the company is loss-making, they can surrender their losses for a cash payment of up to 14.5% of the loss value.

R&D Expenditure Credit (RDEC):
For larger companies and organizations that do not qualify for SME R&D Relief, there is the RDEC scheme. It provides a tax credit of 13% on eligible R&D expenditure, which can be used to offset against corporation tax.

To qualify for R&D Tax Credits, companies must engage in projects that meet specific criteria. The research and development activities should aim to achieve technological or scientific advancement and resolve uncertainties that are not readily solvable by professionals in the respective field. The projects should also demonstrate the presence of innovation, experimentation, and a systematic approach to R&D.

Eligible R&D costs include staff salaries, consumables, software, subcontractor costs, and certain overheads directly related to the R&D project. These costs must be exclusively incurred for qualifying R&D activities.

The availability of R&D Tax Credits has significantly influenced businesses to invest in research and innovation. Companies in various sectors, including technology, manufacturing, pharmaceuticals, and aerospace, have benefited from this tax incentive. The scheme has also encouraged collaboration between businesses and research institutions, fostering a culture of innovation and knowledge sharing.