What are R&D Tax Credits?
R&D tax credits are a popular government incentive that empowers you to decrease your Corporation Tax bill for innovative projects.
Since 2000, the UK government has provided financial support to SMEs and large companies to encourage innovation in the UK. This credit can amount to up to 27% of the expenditure invested in R&D.
To claim your entitlement, you’ll need some expertise; an R&D technical report and a detailed breakdown of claimed costs are crucial for a valid claim.
What are R&D Tax Credits?
R&D tax credits are a popular government incentive that empowers you to decrease your Corporation Tax bill for innovative projects.
Since 2000, the UK government has provided financial support to SMEs and large companies to encourage innovation in the UK. This credit can amount to up to 27% of the expenditure invested in R&D.
To claim your entitlement, you’ll need some expertise; an R&D technical report and a detailed breakdown of claimed costs are crucial for a valid claim.
Book a discovery call with our experienced R&D claims consultant today! Discover how we can maximize your potential claims and help your business thrive.
What Projects Qualify for R&D Tax Credits?
Four primary criteria determine a project's eligibility for R&D tax relief
Conversely, a company working on a new e-commerce site wouldn’t qualify, as it doesn’t push any technological boundaries, and a software expert could readily devise it. For instance, a company undertaking an IT project to devise a novel process for extracting specific data, which perplexes the company’s software experts, may qualify.
Aim to advance science or technology
Aim to overcome scientific or technological uncertainty.
Must not fall under social sciences, arts, humanities, or economics
Advancement can be by developing a new product, service, or process, or by enhancing an existing one
What Projects Qualify for R&D Tax Credits?
Four primary criteria determine a project's eligibility for R&D tax relief
Conversely, a company working on a new e-commerce site wouldn’t qualify, as it doesn’t push any technological boundaries, and a software expert could readily devise it. For instance, a company undertaking an IT project to devise a novel process for extracting specific data, which perplexes the company’s software experts, may qualify.
Aim to advance science or technology
Aim to overcome scientific or technological uncertainty.
Must not fall under social sciences, arts, humanities, or economics
Advancement can be by developing a new product, service, or process, or by enhancing an existing one
How to claim R&D tax credits?
To prepare your claim, you’ll need:
To determine eligibility for projects by compiling your R&D costs and allocate these costs to each R&D project and prepare a technical report covering all projects if you have three or fewer.
If you have more than three projects, include at least three projects covering 50% of the cost.
Before claiming, you must submit an Additional Information Form (AIF), which incorporates information from the technical and costing reports. Additionally, ensure to verify whether advance notification to HMRC is necessary.
You’ll submit your R&D tax claim using your Company Tax Return.
How to claim R&D tax credits?
To prepare your claim, you’ll need:
To determine eligibility for projects by compiling your R&D costs and allocate these costs to each R&D project and prepare a technical report covering all projects if you have three or fewer.
If you have more than three projects, include at least three projects covering 50% of the cost.
Before claiming, you must submit an Additional Information Form (AIF), which incorporates information from the technical and costing reports. Additionally, ensure to verify whether advance notification to HMRC is necessary.
You’ll submit your R&D tax claim using your Company Tax Return.
R&D Tax Credit Calculator
Use our R&D tax credit calculator to calculate how much you could claim!
This calculator serves solely as an illustrative tool to estimate potential claim amounts. Individual circumstances may vary. For detailed information tailored to your specific situation, it is recommended to schedule a consultation with our representatives.
Book a discovery call with our experienced R&D claims consultant today! Discover how we can maximize your potential claims and help your business thrive.
Book a discovery call with our experienced R&D claims consultant today! Discover how we can maximize your potential claims and help your business thrive.
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Complete the form and we'll initiate the process to determine the amount of money you are entitled to. We will also reach out to provide you with further instructions on how to proceed with your claim and recover what rightfully belongs to you.
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