R&D Tax Relief is a UK Government backed incentive designed to encourage innovation and increase spending on Research and Development activities for companies operating in the UK.
- A deduction of 230% of the amount spent on R&D can be made from taxable profits, reducing the corporation tax due.
For loss making companies:
- The scheme allows up to 33.35% of a company’s R&D spend to be recovered as a cash repayment.
However, claims are often overlooked.
Business owners often; over-estimate the level of innovation that is required in order to claim, don’t know about the relief, or simply suspect that it is too good to be true!
To find out; what qualifies, how R&D tax relief is calculated and how to apply, please see: R&D Tax Credits