R&D Tax Credits Explained
The UK’s Research & Development (R&D) tax relief schemes offer generous tax incentives for a wide range of businesses. We're here to help make the process of claiming the greatest possible relief as easy and hassle-free as possible, whilst ensuring you maximise the benefits of the scheme.
R&D for Tax Purposes – Not Just Men in White Coats
The R&D tax relief schemes are remarkably inclusive, designed to be applicable across any sector. The definition of R&D for tax purposes is actually much broader than you might think. In fact, it's quite likely that some of the challenges faced on your business projects on a day-to-day basis could qualify as eligible expenditure.
Working with Ayming (formerly Alma CG) you can be assured that any qualifying activity will be identified thanks to our team's in-depth understanding of the complexities of this niche area of tax, combined with their own industry-specific expertise. It's this combination of tax and technical knowledge which is integral to maximising our clients' R&D tax claims.
Which scheme should I choose & how much can I claim back?
If your business qualifies as an SME under the R&D tax legislation you could claim back up to 33p in every £1 of qualifying expenditure as a loss making entity, or up to 26p in every £1 of qualifying expenditure if you’re making a profit. This could be realised as relief on your payable corporation tax, or in some instances as a cash credit from HRMC. Click image to enlarge...
If your business falls into the Large Company categorisation you will claim under the R&D Expenditure Credit scheme (RDEC) which gives back up to 8.8p for every £1 of eligible expenditure. You may have also heard of the R&D Tax Relief scheme for Large Companies, but for expenditure incurred from 1st April 2016 all Large Company businesses must claim under this RDEC scheme.Click image to enlarge...
R&D Capital Allowances (RDAs)
R&D Capital Allowances (“RDAs”) allow you to claim a 100% first year allowance on R&D capital expenditure, which is significantly more generous that most other types of capital allowance.
If you are carrying out qualifying R&D activities, it is likely that you have incurred some capital expenditure which would qualify for RDAs.
R&D Allowances are based on the same definition of R&D as the R&D tax credits schemes. We therefore recommend that you review your eligibility for R&D Allowances in conjunction with the R&D tax schemes.
What have you got to lose?!
We speak to companies every single day who don’t believe the R&D tax credits schemes apply to them. In reality R&D for tax purposes covers a much broader range of activities than you might think. And the scheme is designed to be applicable to all industries. You would never willingly give your competitors an advantage, so don’t miss out on claiming generous tax relief whilst your peers are benefitting.
If you’re not sure if you could be claiming R&D tax credits, or if you’re just not sure if you’re claiming everything you’re entitled to then contact us today. With over £100m of R&D tax credits claimed for our UK clients, we’re well placed to guide you through this niche area of tax. We work with companies of all shapes and sizes, and across a wide variety of industries to ensure their business enjoys the maximum financial rewards.