Companies carrying out qualifying R&D can claim an extra Corporation Tax ‘super deduction’ on certain qualifying expenditure. The super deduction can reduce taxable income by up to £2.30 for every £1.00 spent.
Where an R&D claim creates a tax loss, it is possible to surrender this and obtain a repayable tax credit of up 14.5% of the loss surrendered. This can mean that up to 33.35% of the cost of qualifying R&D expenditure can potentially be met through tax credits.
To make a claim, a company must be carrying out research and development work in a field of science or technology and have sought to make an advance.
A common misconception is that R&D claims are limited to ‘white coat’ scientific research but equally work in design, software or engineering that involves overcoming difficult technological problems can often qualify too. Qualifying activities can include creating new processes, products or services, making appreciable improvements to existing ones and even using science and technology to duplicate existing processes, products and services in a new way. But pure product development in itself does not qualify.
We have considerable ‘in-house’ expertise in making R&D claims with experts who have prepared many hundreds of successful claims for clients. We would be happy to talk with you to identify whether your company has undertaken qualifying activities and if a claim is appropriate.
We offer a streamlined ‘end to end’ service’ to enable our clients to maximise the value of their R&D claims. Crucially, our claims are prepared in a manner which aligns with HMRC’s internal risk assessment process, enabling these to be accepted as quickly as possible.
Please call 01233 630000 or complete our contact form to speak to one of our specialists who will be happy to discuss whether your company could make a claim.