What is R&D? 

Research & Development tax relief is an incentive from the government to encourage Innovation in businesses. Companies from all different industries can claim the relief. as long as the work is part of a specific project to make an advance in science or technology.

You May be eligible for R&D Tax Credits?

Any company in any industry may be eligible for R&D Tax Credits.

To meet requirements, the company must have undertaken qualifying research and development activities these include

  • Creating new products, processes or services.
  • Changing or modifying an existing product or service

Small and Medium Enterprises (SME) R&D Relief. 

SME R&D relief allows companies to deduct an additional 86% of their qualifying costs from their yearly profit on top of the 100% deduction giving a total of 186%.

SME R&D relief can be claimed if you are a SME with:

  • Turnover of less than £100 million or a balance sheet total below £86 million
  • Less than 500 employees

Allowable costs

  • Staff costs
  • subcontractor costs
  • consumables
  • utilities

However, in order to qualify for the relief, you must be able to explain how the project …

  • had to overcome uncertainty
  • searched for an advancement in science and technology
  • couldn’t be easily sorted by a professional in the field
  • attempted to overcome the uncertainty