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Research and Development Tax Relief

Many Businesses are missing out on Research & Development Tax Relief. Are you?

Recent studies suggest that, roughly, only 5% of Research and Development (R&D) tax reliefs are being claimed by eligible small businesses.

What is Research & Development tax relief?

In 2000 the government introduced Research & Development tax relief to allow small businesses to be innovative. It was established to help with the costs of starting a business and/or creating a new product.

Who Can Claim It?

Small companies can have a tax relief of 130% if they make a profit.
Loss making companies can claim repayable tax credits calculated at 14.5%
To qualify for R&D tax relief, your business needs to prove the following:

  • Your R&D project sought an advance in science and technology
  • Your R&D project had to overcome uncertainty
  • Your R&D project attempted to overcome this uncertainty – Even failed R&D projects are eligible for tax relief
  • Your R&D project could not have been easily replicated by a professional in your industry 

Qualifying expenditure for R&D projects includes:

  • Software
  • Staffing costs
  • Consumable or transformable items
  • Contracted costs (65%)
  • External workers (65%)

The R&D tax relief is a specialist area of tax planning and advice, we utilise the services of a specialist advisor to ensure the claim is processed appropriately.

Should you have any queries about your eligibility for R&D Tax Relief, please do not hesitate to contact us.