Understanding R&D Tax Credits

What are R&D Tax Credits?

Research and development (R&D) tax credits are a UK government tax relief that rewards companies who invest in innovation. The governing legislation is purposefully broad so as to capture innovative work in all sectors and it’s open to companies of all sizes.

Whether you’re creating new products, processes, services or knowledge – or improving what already exists – R&D tax credits are a vital form of government growth-fuel in the form of a direct cash payment or Corporation Tax reduction. If you’re taking a risk by spending money on innovation with science or technology, then you could benefit from a generous financial boost. Your projects needn’t have been ultimately successful or commercially realized, and you can also claim for work undertaken on behalf of a client as well as your own projects.

 

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Not Sure If What You Do Counts?

You’re not alone. Over 70% of clients we work with didn’t realise they qualified for R&D before speaking to us.

R&D doesn’t have to mean reinventing the wheel: it’s solving problems in a new way or having to overcome a challenge that doesn’t have a straightforward solution. Even if you’re able to make use of existing products, processes, knowledge or services you might be undertaking eligible R&D work which involves changing, modifying, and improving what already exists.

 

Examples of R&D

Regardless of your company size, revenue or sector, if your company is attempting to ‘resolve scientific or technological uncertainties’ then you may be carrying out qualifying activity.  Examples of R&D might include creating new products, processes, or services, or modifying existing products, services, or processes. What’s more, you can even claim if your project was unsuccessful.

By not claiming, you can miss out on vital growth fuel for your business.

 

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Am I eligible?

We’ve created a simple, comprehensive report to determine what innovation funding options are available to you. Many of the different innovation schemes complement each other, to ensure your total benefit reflects your investment in innovation. For many businesses, R&D tax relief offers the most generous benefit.

It takes less than 5 minutes. You’ll answer 23 questions, and based on your answers we’ll tell you whether you’re eligible for R&D tax credits, or one of the other government innovation funding schemes.

 

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