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R & D tax credits

Many business owners don’t believe that they are eligible for R&D tax relief as they think it’s only for huge scientific breakthroughs. But R&D tax credits are designed to encourage investment in innovation, whether that’s developing a new process, product or service either internally or for a customer, you could qualify.

Imagine if you had extra tens of thousands of pounds to invest in your business? This is what R&D tax credits can do. This extra money could be used to reduce your tax bill or increase your taxable losses.


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We work on a 'Fixed fee basis', no surprises, giving you full control.
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We maximise each and every claim by doing a thorough review of your business.
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As part of our service, we look at future claim opportunities and help you plan and develop them.
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We do a thorough job whilst keeping your time needed in the process down to a minimum, so you can continue to run your business.
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We never cut corners and prepare a robust technical report for HMRC and guide your accountant (if needed) for completing the relevant tax returns.

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Our leading R&D tax relief service is easy and streamlined, to help you claim R&D tax credits whoever you are, wherever you are. Our R&D credit claim process is:

  • Call or email us for free, no commitment assessment
  • Send us all the documents for the financial & technical report
  • We submit the claim
  • We respond to any HMRC queries or challenges
  • HMRC issues payment within 42 days

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Do you need an R&D tax credits claim service from leading experts? Give us a call today on 03300 886 686 to speak to our advisors, we'll find the right solution to all R&D needs.


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Answers to R&D Tax Credits’s most frequently asked questions

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For tax purposes, when a company undertakes a project that seeks to achieve an advancement in overall knowledge or capability in a field of science or technology, it is involved in R&D. The R&D scheme enables the company to either reduce its corporation tax liability, get a tax refund on previously paid tax, or, if the company is loss-making, they could receive a tax credit byproving that theyhave incurred costs on qualifying R&D.

There are primarily two types of R&D Relief based on your company size and whether or not your project has been sub-contracted to you.

  • Small and Medium Sized Enterprise (SME) R&D Relief

    If you are an SME, i.e., a small or a medium-sized enterprise, with less than 500 employees and a turnover of a maximum of €100m or a balance sheet total of less than €86m, you can claim the SME R&D Relief.

    What it offers? This relief allows a company to do the following:

    • Deduct 130% of their qualifying costs from their yearly profit over and above the normal 100% deduction, making a total of 230% deduction of their qualifying costs.
    • Claim a tax credit if the company is running in losses, worth a maximum of 14.5% of the surrenderable loss
  • Research and Development Expenditure Credit

    If you are a large company and want to claim an R&D relief, then this is the relief for you. It can also be claimed by SMEs and large companies, sub-contracted to do the R&D work by a larger company.

    What it offers? The RDEC offers you a tax credit for 11% of your qualifying costs on the R&D project.

As mentioned earlier, if you are an SME, with less than 500 employees and a turnover of a maximum of €100m or a balance sheet total of a maximum of €86m, you can claim the SME R&D Relief. It needs to be noted that you need to consider the figures of linked and partner companies while calculating if you are an SME.

  • Linked Company: Your Company is linked if it holds over 50% of the voting right in any other company or vice versa. In such a case, the staff number, the balance sheet, and turnover values should be included in your total.
  • Partner Companies: A company is your partner company if it holds over 25% of your company’s voting rights or capital or vice versa. In such a case, the proportion of staff, turnover and balance sheet figures to be included in your total depends on the percentage of voting rights and capital that is shared between the companies.

Projects that make an advancement in some area of science or technology will usually qualify for R&D. It doesn't have to be a ground-breaking invention orthose that happen only in white coats scientific laboratory, but it does need to achieve advancement in science or technology, and by extension the industry in some way.

For a project to qualify, the company needs to explain how the project:

  • looked to seek an advancement in a field of science or technology.
  • had to overcome an uncertainty.
  • tried to overcome this uncertainty
  • could not be easilyworked out bya professional in the field.

Therefore R&D can include creating new processes, products or services, making recognisable improvements to existing ones and even using science and technology to replicate existing processes, products and services in a new way.

Whatever the size of your business, if you are creating new products, processes or services – or modifying existing ones – there is a good chance you could be carrying out R&D. R&D can take place in any sector. It occurs in everything from food-processing to software development, construction to healthcare.

While submitting a corporation tax return, a business must check (put ‘X’) for box 99 which is for SMEs, and the improved expenditure in box 101. However, DNS Accountants recommend that businesses should interact with members from their learned and experienced team to seek guidance and advice on making a claim. This will help the businesses to make certain that every section of the define criteria is met, and the actual spending amount corresponding to R&D can be claimed back

Businesses will be required to notify HM Revenue and Customs (HMRC) and explain them the reason for a particular R&D activity to qualify for a tax relief. Usually, there is a time range within which a business must make sure that they have filed for a relief – this period is 2 years subsequent to the end of the tax return accounting period. If a business thinks that it qualifies for a R&D tax claim, it is imperative to produce adequate records of project in case HMRC demands for them. By doing so, businesses can make sure that they have applied for the tax relief and are likely to qualify for the claim

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