Research and Development (R&D) tax relief
R&D tax credits
We understand the significance of R&D tax credits to your business, and we recognise the importance of avoiding delays in repayment caused by HMRC inquiries. That's why it's crucial to partner with a trusted R&D consultant. We are committed to providing comprehensive assistance in preparing and securing your R&D tax relief.
What are Research and Development tax credits?
Research and Development (R&D) tax credits are a government incentive aimed at motivating businesses to engage in innovative and developmental initiatives. These credits are calculated based on your company's R&D expenses and can be utilised to lower your tax liability or secure a cash refund from HMRC.
Why should you make an R&D tax relief claim?
Financial Benefit:
A successful claim can result in a non-repayable cash payment or a reduction in your company's tax liability, providing crucial support for your cash flow.
Encourage Investment:
It encourages businesses to invest in research and development, fostering innovation and growth.
Global Innovation
By participating, you contribute to positioning the UK as a leader in research, development, and innovation worldwide.
Is your business eligible for R&D tax credits?
Eligibility is broad: Companies in any industry can potentially claim HMRC R&D tax credits. The key requirement is that your activities aim to advance science or technology, or they directly contribute to resolving scientific or technological uncertainties. This might sound complex, but many businesses unknowingly engage in qualifying work. Eligible projects can lead to tangible outcomes like new products or processes, or intangible benefits like knowledge or cost improvements. Even unsuccessful projects can qualify. Don't hesitate to explore your eligibility.
Which costs are eligible for R&D tax relief?
Several expenses can qualify for R&D tax relief:
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Agency staff: Costs related to individuals involved in R&D, whether directly or indirectly.
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Employee costs: Expenses for employees directly or indirectly participating in R&D activities.
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Materials and consumables: Costs for items utilised in your R&D project.
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Subcontracted R&D expenditure: Expenses related to R&D work contracted to external entities.
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Software: Costs for software used by your R&D team.
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Utilities: Expenditure on fuel, power, or water used in your R&D activities.
Additionally, some businesses overlook claims for capitalised expenses, potentially missing out on substantial benefits. Our experts can help you identify qualifying capital expenditures and provide guidance to maximise your R&D claim.