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Never applied for R&D Tax Credits?

You are missing out!

Don't miss out on potential cash! Claim R&D Tax Credit

As you all know, the pandemic has impacted everyone in one way or another. Today, we are here for business owners who have been affected through the various lockdowns. The government has issued several incentives, which have been confusing or pulled without much notice.

If you would like a helping hand to replenish your cash reserves or pay some of the PPE requirements that you have had to fork out for, then stay tuned, you are in the right place!

This article is targeted towards business owners who never applied for R&D Tax credits before. If you’re curious and want to know a little bit more before making any decisions, then this article is for you. 

What is the R&D Tax Incentive?

The R&D Tax Incentive was introduced by the government in 2000 to encourage innovative companies to increase their investment into R&D and grow the innovation of UK companies.

The R&D Tax Incentive offers reductions or rebates of corporation tax for any eligible R&D activity, regardless if you are a profit or a loss-making company. Do not miss out on the potential thousands of pounds that you could be re-investing into your business, use our calculator to calculate your potential claim today!

 

 

How do I know if my company qualifies for R&D Tax Credits?

You must meet this criteria:

  • Be a UK limited company that has been trading for 12 months, and does not fear liquidation, administration or planning to close in the near future
  • Have incurred costs for eligible R&D activity

Some helpful background tips:

  • You can backdate a R&D Tax Credit claim up to 2 accounting years. These claims are submitted within your 12-month financial periods.
  • The incentive primarily aims to reduce your Corporation Tax bill, but often you can receive a tax rebate from pervious years and even receive a payable credit in form of a cheque or a bank deposit from HMRC.
  • It is project-dependent, not industry-specific. If your R&D project makes a ‘’scientific or technological advance’’ it will be eligible.
  • R&D Tax Credits are worth as much as 0.33p for every £1.00 you spend on R&D related projects.

Great to know:

  • You can still claim tax relief even if your R&D project fails.
  • You can still claim R&D Tax Credit if your company is making a loss.
  • If we work on your R&D Tax Credit Claim, you don’t pay us unless your claim is successful.
HMRC Logo
HM Revenue & Customs logo

As per HMRC’s guidelines, a project does not have to be successfully completed for it to be classed as qualifying under the R&D Tax Incentive. Failed projects, whereby the technical uncertainties could not be overcome can still qualify under the incentive as long as the work carried out falls within the criteria.

What costs can I claim for?

Utilities. Salaries and wages. Employer’s NI Contributions. Employer’s Pension Contributions. Materials and wastage consumed during the project. Prototypes created. Subcontractors’ invoices. Software licenses.

How do I apply for the R&D Tax Incentive?

Make sure you qualify first. Produce a technical report. Provide evidence and calculations to support your claim. OR contact tax specialists like ourselves who will take care of everything mentioned above.

R&D Tax Incentive FAQs

  1. The R&D Tax Incentive, to put simply, boosts your eligible project costs which reduces the amount of Corporation Tax that you need to pay by reducing company’s profits that are declared.

    • For profit-making companies: The value for R&D Tax Incentive will be in the tax saving you make.
    • For loss-making companies: The R&D Tax Incentive offers payable credit that is accessible through surrendering your losses @14.5%, which offers up to 33% return on you R&D investment.
  1. Accommodation and Food
  2. Admin and Support Services
  3. Agriculture, Forestry and Fishing
  4. Arts, Entertainment & Recreation
  5. Construction
  6. Education
  7. Electronics
  8. Electricity, Gas, Steam and Air Conditioning
  9. Energy Services
  10. Engineering
  11. Financial Services
  12. Food and Drink Manufacture
  13. Health and Social Care
  14. Information & Communication
  15. Insurance
  16. M&E Services
  17. Manufacturing
  18. Mining and Quarrying
  19. Pharmaceutical
  20. Professional, Scientific &Technical
  21. Public Admin, Defence and Social Services
  22. Real Estate
  23. Software and Technology
  24. Transport and Logistics
  25. Water, Sewerage and Waste
  1. The R&D Tax Incentive was introduced by the government in 2000 to encourage UK companies to invest in technological and scientific innovation. By offering a large reduction in your corporation tax or payable credits, the incentive allows SMEs to re-invest a larger amount of cash into future R&D projects, growing the Innovation sector and the UK economy.  

There are many things that affect how much you can claim:

  1. Whether you are applying as a SME
  2. Whether you are applying as SME under the RDEC Scheme
  3. Are you profit-making?
  4. Are you loss-making?
  5. Have you been in receipt of funding?
  6. How much have you invested into R&D?

 

If you would like an estimate of how much you can claim based on your current expenditure, use our free calculator, and get in touch with us to start your claim.

R&D Tax Incentive explained

In this video we give you a quick overview of what the R&D Tax Incentive is, and what activity your company needs to be undertaking to qualify for the incentive. 

Small conference
Large R&D Tax Credits conference/lecture room

R&D Tax Credits
SME Scheme

Based on £100k of R&D Costs you could potentially receive:

£24,700

(If Profitable)

£33,350

(If Loss Making)

R&D Tax Credits
RDEC Scheme

Based on £100k of R&D Costs you could potentially receive:

£10,530

(Processed as an Expenditure Credit)

Start your claim