R&D Tax Credit Relief – Things to Know Before Claiming!

Date: 28th March 2014

Research and Development (R&D) tax relief is a corporation tax credit relief that’s specifically formulated to reduce your company or organisation’s research and development costs. There are still a lot of companies not claiming R&D relief because they do not fully identify which activities or costs qualify for tax relief, or what qualifies as R&D.

Research and development tax credits can go a long way in funding your business with the average claim in the UK being over £40k. This tax relief scheme is designed to help small and medium sized enterprises (SME) as well as larger ones operate to develop innovative products or service at a reduced cost.

Research and Development (R&D) covers a vast spectrum of industries and the tax credit relief is not only for specified industries. Your company can claim R&D tax credit relief only if the specific project is helping to resolve any scientific or technological uncertainties. You can claim for R&D tax relief if you carry out any one of the activities such as manufacturing, design work, development of software, or development of any process that improves internal efficiencies.

Apart from the above mentioned activities, there are lot more things to consider before claiming R & D tax relief in UK. The most important thing is to figure out whether your company qualifies for R&D tax relief or not. If your answer to the following questions is “yes”, it is likely that your company qualifies.

Have you been a UK Limited Company for 12 months or more?
Have you invested in developing innovative products and manufacturing processes, or software and IT solutions within your business?
Do you design or manufacture specially engineered products, components or software?
Credits are offset against Corporation tax or where there are no profits, a cash credit is available, all subject to qualifying conditions being met
If you are currently paying 20% or more to reclaim your R&D credit today you should give us a call. Claim R&D tax relief with us today and increase cash flow in your organisation! For more, visit

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