Research & Development Tax Relief
In total, we’ve saved our clients almost £3m in R&D tax relief
The UK’s current research and development (“R&D”) tax relief scheme is one of the most generous in the world. Aimed at encouraging innovative activities within UK companies, the relief provides small and medium-sized companies with an enhanced corporation tax deduction equivalent to 86% (130% pre 1 April 2023) of qualifying expenditure during the period, meaning a company receives a tax deduction of £1.86 for every £1 spent on R&D.
Has your business developed innovative technology in its industry? Or has it been pushing the boundaries of modern-day science or technology, improving existing processes? If so, are you maximising the tax relief you could be claiming on the costs of doing so?
The benefits of R&D don’t stop at the additional tax relief; the legislation recognises that a lot of companies undertaking R&D will not be generating profits, and so the enhanced deduction alone might not benefit all companies. It therefore goes further and allows loss-making companies to surrender their losses in return for a non-taxable cash credit, helping to support further R&D activities.
Whether your company’s R&D activities have proved successful or not, and regardless of the level of expenditure you have devoted to it, it could qualify for these substantial tax savings. The team at Walpole Dunn has extensive experience in preparing successful R&D tax relief claims, and know exactly how to produce a claim capable of being accepted by HMRC on its initial submission. In addition, our commitment to providing a cost-effective service means that we offer this at a rate no R&D boutique or traditional accountant can match.
Even if your company’s R&D activities ultimately proved unsuccessful or have now ceased, if you think your company has undertaken R&D within the last two years, contact us without delay to arrange an initial no-obligation, no-cost meeting.
Green Recycling Limited
Read about how we've helped Green Recycling Limited earn fair reward for their groundbreaking R&D
For R&D tax relief purposes, SMEs are independent companies with no more than 500 employees, and either an annual turnover of less than €100m or an annual balance sheet value of less than €86m.
Any projects that seek an advancement in established scientific or technological knowledge or capabilities can qualify. The project may relate to a new or existing process; material; device; service; or product.
Retrospective claims must be made through the company's corporation tax return and so the time limits follow those applicable to tax return filing deadlines. You therefore have up to two years after the accounting period end date to file your R&D tax relief claim, and claims can be made by amending a previously-submitted tax return.