R&D Tax Relief
Research & Development (R&D) Tax Relief is one of the UK’s most generous corporation tax reliefs but is still widely under-claimed, with thousands of eligible companies missing out on significant tax benefits.
One of the common misconceptions is that R&D only relates to activities that are going to completely revolutionise science and technology. But this is not always the case.
If your company is creating (or even modifying) an existing product, process or service and is overcoming scientific or technological uncertainties in achieving this, then you could potentially be entitled to a claim - even if the project itself is unsuccessful.
What is R&D Tax Relief?
R&D Tax Relief is a government initiative that encourages innovation and increased spending on R&D activities by providing a potentially significant corporation tax benefit.
There are two schemes depending on the size of your business. A company would qualify for the SME scheme if:
- You employ under 500 staff and
- Either your turnover is less than €100 million or the company’s balance sheet is less than €86 million
Any business exceeding the above would fall into the “large company scheme” for R&D purposes. Under this scheme, you could claim up to 10p for every £1 of qualifying expenditure.
For profit-making SMEs there is an average tax benefit of up to 16.5% - and the average claim made under this scheme so far in the year 2022/23 is worth £36,000 in cash. Loss-making SMEs can also benefit by claiming up to 19p for every £1 of qualifying expenditure as a cash payment.
Daphne Hemingway
Daphne has more than 27 years experience of specialist VAT litigation and dispute resolution skills.
She has an excellent success rate based on her thorough assessment of the cases. Other accountancy firms also refer their clients for these specialised services. VAT and property transactions are another specialist area for Daphne. A thorough understanding of land law, Daphne advises both property developers and house builders on means of saving VAT on transactions. She also works with law firms and provides bespoke, tailored training.
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