Research and development

Are you eligible for a research and development tax credit?

If we were to ask you if your business engaged in research and development (R&D) would your answer be “We just look at making new and better products to keep us one step ahead of our competitors”?

If you have said ‘yes’ to our question, then you are engaged in research and development and this additional special double tax relief could reduce your company’s corporation tax liability or even result in cash back.

What qualifies for research and development tax relief? 

Qualifying costs include the following:

• Staff costs for time spent on R&D (directly or indirectly)
• Power, water and software used for R&D
• Some payments to sub-contractors
• 100% allowances are available on capital items acquired specifically for R&D.

SME research and development relief allows companies to claim up to 230% of their qualifying expenditure from yearly profits. This includes the normal 100% deduction, plus an additional 130% tax break. If a company makes a loss, then it can claim a repayment of up to 14.5% of any losses surrendered.

Research and development tax credit claims must be made within two years of the costs being incurred. The timing is dependent on the financial year end of your company.

Why choose us?

Our in-house accountants and tax advisors have successfully made dozens of research and development tax relief claims for our clients, many resulting in a refund in the tens of thousands.  We’re happy to help with your claim and provide a fully managed service to ensure this happens smoothly.

Read more about research and development tax relief and qualifying expenditure in our blog. You can also read about us and the way we work.

To find out more about research and development tax credits, email or call us on 0161 370 9600 to discuss your claim.