Research and Development Tax Credits for SME’s

Research and Development

If your business is involved in the creation of products, processes or services, then it could qualify for significant tax relief or credit.

What costs are claimable?

Payroll, software, materials, utilities and subcontracting costs.

What are they worth?

Every £1,000 costs attributable to R&D attracts an enhancement of 130%.

For example:
£10,000 of costs is enhanced by an extra £13,000, providing an additional £2,600 credit or relief, assuming corporation tax at 20%. Losses can be surrendered at 14.5% yielding a credit of £1,885 given the above costs.

What period can I claim?

You have 2 years from the year end in which the costs have been made to make a claim.

Who can claim?

R&D can apply to any business in any sector. It is more likely found in manufacturing, engineering, software development, biotech and engineering. However, successful claims have also been claimed in construction, transport, agriculture and many others.
HMRC believe that thousands of qualifying businesses are unaware of their entitlement.

Please contact us and we can refer you to one of our specialists.