Research & Development Relief

What is R&D Tax Relief?

R&D tax relief is a UK government incentive that rewards companies for investing in innovation. It allows you to:

• Reduce your Corporation Tax bill, or
• Claim a cash repayment if you’re making a loss.

You don’t have to wear lab coats or build rocket ships — if your work seeks to resolve technological or scientific uncertainties, you could qualify.

How We Can Help Your Claim

• Eligibility Review
  We explore your projects, costs, and activities to determine if your work meets HMRC’s R&D criteria.
• Preparing a Robust Claim
  We prepare the detailed technical and financial reports HMRC expects, identifying qualifying staff costs, subcontractors, software, and consumables.
• Maximising Your Benefit
  We structure your claim to ensure you get the largest benefit possible, whether under the SME scheme or RDEC.
• Handling HMRC
  We submit the claim, deal directly with HMRC on your behalf, and handle any questions, so you can focus on running your business.

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How Much Could You Save?

SMEs

For a non-R&D intensive SME, from 1 April 2023, the payable tax credit is up to £18,600 based on £100,000 of qualifying R&D expenditure. The company claims an additional deduction of 86% and, provided it has trading losses equal to, or in excess of, 186% of the qualifying R&D expenditure (ie £186,000), it can surrender losses of up to £186,000 at a rate of 10%. For an intensive SME, the surrender of losses occurs at 14.5%, providing a tax benefit of £26,970.

For accounting periods beginning on or after 1 April 2024, the mechanism and tax benefit is the same, but with the added proviso that the company must have taxable losses prior to the 86% enhanced deduction being taken.

All payable SME tax credits are subject to a cap of £20,000 + 300% of the claimant’s total PAYE/NIC liabilities.

Large companies (or SMEs subcontracted by large companies)

Can claim under RDEC, the relief give taxable “credit” of 20% of qualifying R&D expenditure. As the credit is taxable, the after-tax credit for £100 of qualifying R&D expenditure is worth between £16.20 (for companies which pay corporation tax at 19%) and £15 (for companies paying at 25%). This credit is in addition to corporation tax relief for tax-deductible R&D expenditure, which is available in the usual way (at between 19% and 25%).

Ready To Claim What You Deserve?

Don’t leave valuable tax relief unclaimed. Let our experts guide you through the process and secure the cash your business is entitled to.

Schedule your free consultation