Lets see what R&D Tax Credit you could receive

The R&D Tax Credit incentive is calculated on the costs incurred during the development period for each of your companies financial years. To see how much you could be entitled to, roughly total how much you have spent within a 12 month period up to your companies year end. Costs can include:

  • Salaries, Pension Contributions & Class 1 NIC
  • Sub-contractor costs
  • Software Licences
  • Utilities
  • Materials & Wastage for prototypes etc
  • Externally Provided Workers
  • When you total this amount, and factor in certain conditions of the incentive you can quickly and easily get an estimated benefit amount.

    R&D Tax Credit Calculator

    Do you have more than 500 employees and turnover exceeding £100,000?

    No

    How much have you spent on R&D?

    £1,000

    What was your profit the same year?

    £0

    Our upfront fee

    Always £0

    You could receive a tax credit of

    £1,885

    Example Claim benefit amount

    If we use a small manufacturing firm who make cardboard boxes as an example, they may have designed several new packaging prototypes. They have 30 staff but only 5 are involved in the R&D on a part time basis which totals approx £70k. They go through considerable prototypes and iterations throughout the year and calculate this to cost approximately £20k. They have taken out a new software package which has cost them £5k in software licences. A % of their warehouse utility costs can be attributed and finally a portion of the travel they do can be claimed.

    Now they can see they have a benefit amount of £24,700 which they can use to reduce their upcoming corporation tax bill. If the benefit amount is more than their tax bill they can surrender the surplus for a payable tax credit which comes in the form of a cheque or bank deposit.

    SME Sample Calculation

    Labour Costs £70,000
    Materials & Wastage Costs £20,000
    Software Licence Costs £5000
    Utility Costs £2000
    Travel Costs £3000

    £24,700

    Potential payment from HMRC

    Types of R&D tax credits schemes

    • SME (Small or Medium sized enterprise)

    • Fewer than 500 staff

    • Less than 100 million Euros (turnover)

    • Less than 86 million Euros (assets)

    • RDEC (Research and development expenditure credit)

    • More than 500 staff

    • More than 100 million Euros (turnover)

    • More than 86 million Euros (assets)

    • Received government state aid

    • Received de minimis aid

    Still unsure which incentive if right for you?