Research and Development Tax Relief

What Is R&D Tax Relief?

Research and Development (R&D) tax relief is a government incentive designed to reward companies that are investing in innovation with a tax credit.

How Do R&D Tax Credits Work?

R&D tax relief schemes, such as HM Revenue and Customs’ (HMRC’s) R&D tax relief scheme in the UK, allow innovative companies that are seeking a technological or scientific advancement within their industry to claim a corporation tax reduction or refund for their qualifying R&D activity.

Is My Business Eligible for R&D Tax Credits?

To qualify, a company must be seeking a technological or scientific advantage within its industry. It’s important to note that this does not have to be a successful project that becomes operational, nor does it have to be a completed project.

If your company has developed a new process, product, or service or modified an existing one, it could be eligible for R&D tax relief.

To be eligible to claim R&D tax credits in the UK, businesses must be UK-registered and liable to pay corporation tax. Small and medium enterprises (SME) need to have under 500 employees and either under €100 million turnover or €86 million on the balance sheet. Large companies can claim under the Research and Development expenditure credit (RDEC) scheme.

How Do I Claim R&D Tax Credits?

To claim R&D tax relief, your accountant or adviser will need to identify if your company is eligible by undertaking a detailed audit of your business via a site visit or phone call.

A comprehensive report is required for each R&D claim, including a breakdown of qualifying costs and R&D projects.

With more than 15 years of R&D experience in the UK, Ryan’s team of in-house tax relief specialists will create a robust claim report, adhering to R&D legislation. The team will then submit it to the relevant government authority, for example, HMRC in the UK, alongside an amended company tax return.

The R&D tax credit will be awarded to your company in the form of a corporation tax reduction or refund, which you can then use to fund future innovation or to grow your business.

If you would like to discuss your eligibility or enquire about how we can support your business, simply fill out the form below and one of our experts will be in contact shortly.

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Other Innovation Funding Services

Ryan’s unrivalled expertise within innovation funding and tax relief empowers companies to fuel their business growth and fund their future. Our specialist team will evaluate your business’s eligibility for a diverse range of innovation funding services, including grants, research and development (R&D) tax relief, capital allowances, the patent box, and land remediation relief.