Research & Development Tax Relief for SMEs
Money back for investing in innovation
Research and Development (R&D) Tax Relief is a Government tax break designed to encourage innovation by incentivising companies to develop new or improved products, processes, services or systems, enabling them to reduce their tax bill or claim tax refunds on a proportion of their R&D expenditure.
24.7% TAX REDUCTION FOR 33% CASH BACK FOR LOSS PROFITABLE COMPANIES MAKING COMPANIES
R&D TAX CREDITS : HOW IT WORKS
R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology. Eligibility is not limited to activities taking place in laboratories and science based research centres. R&D tax credits can often be claimed in far broader areas and various enterprises could qualify for significant tax reductions and gain a cash flow boost. Loss making companies can even claim back tax they haven’t paid in the first place. R&D tax credits can be claimed from your previous two accounting periods.
WHAT’S IT WORTH ?
Tax reduction or refund of up to 24.7% of eligible R&D expenditure for profitable companies.
Up to 33.35% cash back for loss making companies
Staff costs of those working on a project
Subcontractor costs (65% allowable)
Materials, software and some overhead expenses
Want to have the whole, clear picture about this essential savings?
Download here the related infographic from our UK accounting partner Beavis Morgan,