What are R&D tax credits?

Small and medium-sized (SME) R&D relief

This is for businesses with:

SMEs that qualify for the relief can:

• Deduct an extra 130% of their qualifying costs from your yearly profit, as well as the normal 100% deduction, to make a total 230% deduction
• If loss-making, claim a tax credit worth up to 14.5% of the surrenderable loss

Businesses that qualify for RDEC claims can:

• Get a tax credit of 13% (taxable) equivalent to 11p for every £1 spent on R&D
• Depending on if your company is profit or loss-making the credit may be used to remove a tax liability or take the form of a cash payment