Two types of R&D tax relief
By claiming R&D tax relief, you can expect to get between £0.11-£0.33 for every £1 invested in R&D, depending on your company size.
SME (small or medium–sized enterprises)
This type of R&D tax relief is for business with more than 500 employees and a turnover of less than €100m or a balance sheet total below €86m. SME R&D relief allows firms to deduct an additional 130% of their qualifying costs from yearly profits, as well as the normal 100% deduction, resulting in a 230% deduction overall. Loss-making companies can even claim up to 14.5% relief of the surrenderable loss.
RDEC (large business)
RDEC is the replacement of the previous Large Company R&D scheme offered by the UK government. RDEC can be claimed by companies with more than 500 employees. It can also be claimed by SMEs and large companies that are subcontracted to undertake R&D work by another large company. RDEC allows firms to claim 11% tax credits of their qualifying R&D expenditure.