In essence, R&D Tax Credits are a government incentive that supports companies who are trying to achieve a ‘technically challenging’ project. Whether that be the development of a product, process, software or service, if you are spending on R&D, you could be entitled to a corporation tax deduction/refund or, if you are loss making, a cash payment from HMRC.
Did you know...
- More companies qualify than most think
- Average value of a claim is £52k
- Your company can still receive a cash payment even if you are loss making
- Your company can still claim if you have received grants
- You may still be able to claim even if you have been paid to do R&D on someone else’s behalf
This means, claiming back on R&D is a smart move, with qualifying expenditure including wages, agency workers, subcontractors, consumable items, software and much more. However, the amount you can claim back does depend on the size of your business.
An SME can receive up to 33p for every £1 spent on R&D activities, while a large company can claim 9.7p for every £1 of qualifying expenditure.
An SME can claim back up to 33p for every £1 spent on R&D
A large company can claim back up to 10p for every £1 spent on R&D
The R&D Tax Credit Specialists
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