R&D tax credits reward and encourage scientific or technological advancements and improvements, by supporting companies that work on innovation projects, helping them reinvest in further innovation and growth.
Reducing your tax bill
Basically, R&D tax credits (also known as R&D tax relief) are a corporation tax relief that helps reduce your company’s tax bill, in many cases reducing it to nil, and potentially giving you money back from HMRC as well.
Don’t be put off by the term ‘innovation projects’, as all types of companies across all sectors could be eligible through projects and activities that improve or create new products, services, processes, devices or materials.
The main costs you can include in your R&D claim are:
- Time and salaries of employees time spent on R&D activities
- Costs of externally provided R&D staff
- Subcontractor costs used on R&D activities
- Consumable items such as materials used in the R&D process
- Software directly used for R&D
55% of eligible SMEs are still not claiming R&D tax credits that they are entitled to
What could your claim be?
The average UK R&D tax credit claim for an SME is around £53,876.
Imagine how an additional £53,876 could help fuel your business growth and development.
Contact us for your FREE discovery call to find out if your business is eligible on 01684 252464.