R&D Tax Credits: What You Need to Know

employment law

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.

For SMEs:

  • 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

The information provided within this document is for general informational purposes only. While every effort has been made to ensure its accuracy, no responsibility can be accepted for inaccuracies. Readers are advised that laws and practices may change over time. This document is provided solely for informational purposes and does not constitute accounting, legal, or tax advice. Professional advice should be sought before making any decisions based on the contents of this document.