What are R&D tax credits?
Research and Development (R&D) tax credits are an incentive to reward companies engaged in innovation. A UK tax relief, R&D tax credits can provide valuable funding for any company spending money on developing new products and process or improving existing ones. This relief can give your business the opportunity to claim back a proportion of your R&D expenditure as tax credits, which can reduce your tax bill or increase taxable losses. No matter the sector, if you’re spending money on research and development, then you could be eligible to claim R&D tax credits.
Does My Business Qualify?
Three ticks means your company can claim R&D.
Are you a limited company trading in the UK?
Do you carry out qualifying R&D activities?
Have you spent money on these?
Types of R&D
SME Scheme
If you have less than 500 employees in your company and/or group and less than €100m turnover you are eligible for the SME scheme
- A 130% uplift is applied to your R&D costs leading to a tax reduction of £24.70 for each £100 spent on R&D if you make a profit;
- Loss making? you could receive a cash payment of £33 for each £100 of R&D expenditure;
- Claims can go back two full years resulting in a repayment of corporation tax already paid.
RDEC Scheme
You are eligible for the RDEC scheme (formally Large Company Scheme) if you have over 500 employees in your company or group or more than €100m turnover.
- No minimum R&D Spend;
- No upper limit on claims;
- From April 2020, Above the Line Credit, is mandatory with a benefit of £10.50 per £100 on R&D;
- Repayable credit now possible for large companies;
- Can still access the 30% uplift scheme for previous tax years.
How much can I claim?
R&D Tax Credit Calculator
The easiest way to calculate R&D tax relief is by using the calculator
This calculator is intended as a rough guide for understanding how R&D relief corresponds to expenditure. This should not be relied upon in determining specific R&D calculations. Please note that the calculator uses the current corporation tax rate of 19%.
What Costs Qualify for R&D Tax Relief?
Our Process
Our friendly team will guide you through the entire R&D claim process, working on your behalf, allowing you to concentrate on the day-to-day business. Our process has a proven track record for delivering excellent results as well as a fully defensible claim.
Why Choose Us?
Ready to apply?
If you’re ready to apply for R&D tax refund, please call us on the freephone number below or use the contact form and one of our helpful team will be in touch to help.
By completing the above contact form you consent that Tax Bright can contact you with regard to an R&D Tax Credits claim and use your details during any future claims.
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