R&D Tax Credits

R&D Tax Relief can significantly reduce your Corporation Tax and can even result in a cash payment from HMRC. It works by providing additional tax relief for expenditure on eligible R&D activities.

Here’s a quick example:

Without the credit

With the credit

Sales £600,000 £600,000
Expenses £400,000 £400,000
of which R&D £100,000 £100,000
Profit before tax £200,000 £200,000
Corporation Tax £40,000 £14,000
Saving from R&D Credits £26,000

* This example uses the small company R&D scheme which is available for companies with turnover less than EUR 100m and fewer than 500 employees.

Our fees

Our R&D Tax credit fees are really simple. We charge you the higher of:

  • 10% of the value of your resulting tax credit; or
  • £1,000.
  • * Excluding VAT.



    What’s R&D?

    As you would expect HMRC have a very specific definition of R&D:

    “An R&D project seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty – and not simply an advance in its own state of knowledge or capability.”

    The easiest way to think about this is whether or not at the start of the R&D an expert in the field would not have been certain if the advance was achievable.


    How it works

    Our accountants are experienced in identifying the types of expenditure relevant for R&D tax claims and preparing all the paper work required to file the claim.

    1. We have a preliminary discussion around the scope of the R&D activity to ensure the project is viable.
    2. We dig through through your accounts to identify the expenditure that can be classified as R&D expenditure.
    3. We prepare a report to support the R&D claim to HMRC. It details the nature of the research and why it’s eligible for R&D tax relief in reference to HMRC criteria.
    4. We make the submissions to HMRC
    5. You enjoy the tax relief!

    Assuming your accounts are in good order we should be in a position to file the tax claim within one month of you engaging us.


    Discuss R&D Tax Credits with one of our accountants

    Call us on 0118 380 0308, use the chat box at the bottom right of your screen or fill in the form below and we will call you back as soon as possible.

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