Home > Knowledge > Research & Development tax credits
You’ve done the research and grown your business.
Now you can claim a tax deduction of up to 230% of the costs you have incurred in doing the work.
We have a strong track record in identifying and submitting successful claims for clients and we can help you through the entire process.
One of the most valuable forms of tax relief available to businesses is Research & Development (R&D) tax relief. Open to small or medium-sized enterprises and extended to large companies, HMRC created R&D to incentivise innovation amongst UK businesses.
Businesses are always on the look out for ways to invest, grow and excel in their industry sector. There are several ways in which they can capitalise on these opportunities in a variety of tax efficient ways. Bu they often don’t. Either because they are unaware or sometimes they are just not willing to raise their heads above the parapet.
20 years down the line and our internal research suggests only half of the eligible companies take up the opportunity for tax relief using R&D.
UK SMEs are the most affected in unclaimed R&D tax relief. This is largely due to business leaders not knowing their company is eligible for such relief or not finding the right professional to advise efficient tax planning & relief.
R&D applies when you are developing a new product, service or process that can improve a previous one currently in practice. R&D tax relief can still be claimed even if the development was a failure. This produces great innovation as your company continues to grow with efficiency.
The ‘Manufacturing’, ‘Professional, Scientific and Technical’ & ‘Information and Communication’ sectors are benefiting the most from R&D making up 75% of the total claims made in 2016-17.
Accountants have a responsibility in helping your business thrive. Providing efficient, professional & accurate advice on all available annual accounts, bookkeeping & tax relief services should be a top priority in achieving this for your company.
Businesses can make a claim for R&D up to two years after the company accounts year-end. The relief can be included in CT600 to reduce the amount of corporation tax payable or increase a loss which can increase the amount of R&D payable.
If you are interested in exploring the R&D Tax Relief opportunity, get in touch with our Tax Manager Liam McCreath in our Glasgow office.
The information provided is for general information purposes only.
Legislation and details may have changed since this was written. The text may not include all matters that are relevant to your individual situation.
You should not make decisions, or refrain from making decisions, without taking further professional advice about your specific circumstances.
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