R&D Tax Credits

08/Nov/2018

Since 2000 the government-backed R&D tax credit scheme has provided thousands of businesses with generous tax incentives designed to encourage innovation in the UK.

With an ever-increasing client base in the technology sector and working with our clients in other sectors to identify qualifying activities they were perhaps unaware of, our extensive expertise has enabled us to deliver R&D tax credits to a number of businesses we work with on a 100% success rate.

If your business is seeking to resolve a technological or scientific uncertainty (be that modifying existing processes or products or developing new ones) you could qualify.

Depending on the size of business, the cost profile and other factors there are two main schemes that apply, the SME or RDEC schemes, that enhance relevant expenditure resulting in reduction of corporation tax or in certain scenarios a repayable tax credit which are generally between 25%-33% of the qualifying costs.

Eligible costs include both directly employed and subcontracted labour, consumables and software - our team consult with clients to ensure all relevant costs are identified, and oversee the process through to the claim which is undertaken via the corporation tax return prepared alongside the annual accounts.

Provisional HMRC figures indicate the average claim by SME’s in the 2016/17 financial year was £54,000 with the number of claims more than doubling in that year compared to the prior year – if you’ve worked hard to drive innovation (regardless of industry!) get in touch with our expert team to discuss how R&D tax credits could benefit your business.