Research and Development (R&D) tax relief is a government incentive that rewards UK companies for spending on innovation.
- Under the SME scheme, companies that spend money developing new products, processes or services or improving existing ones are eligible for a Corporation Tax refund/reduction and/or payable Tax Credit.
- If eligible, you can claim relief for your last two completed accounting periods with qualifying expenditure is identified by us and enhanced by the relevant rate, which is currently 130%.
- When this enhancement is deducted from your profits or added to your loss, it will reduce your tax bill if you were profitable, give you a cash credit if you were loss-making or even provide a combination of the two. For loss-making companies, these payable Tax Credits can be as much as 33p for every £1 of qualifying expenditure.
- The SME scheme is open to the vast majority of UK limited companies with less than 500 employees. However, R&D Tax Claims specialise in securing claims for manufacturing and engineering companies that typically have at least 25 employees. Take our quick questionnaire to see if you are eligible, and visit our success stories.