Introduction to R&D Tax Credits

R&D tax credits support companies that work on innovative projects in science and technology. They can be claimed by a
range of companies that seek to research or develop an advance in their field. It can even be claimed on unsuccessful
projects.

The work that qualifies for R&D relief must be part of a specific project to make an advance in science or technology. It can’t be an advance within a social science like economics or a theoretical field like pure maths.

To get R&D relief you need to explain how a project:

  • looked for an advance in science and technology
  • had to overcome uncertainty
  • tried to overcome this uncertainty
  • couldn’t be easily worked out by a professional in the field

Your project may research or develop a new process, product or service or improve on an existing one.

R&D tax credits allow companies to:

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

Contact us for a FREE initial consultation to find out if your business qualifies on info@quantumtax.co.uk

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