Jerroms Research & Development


Research & Development

Research & Development (R&D) Tax Relief is one of the UK’s most generous corporation tax reliefs but is still widely under-claimed, with thousands of eligible companies missing out on significant tax benefits.

One of the common misconceptions is that R&D only relates to activities that are going to completely revolutionise science and technology. But this is not always the case.

If your company is creating (or even modifying) an existing product, process or service and is overcoming scientific or technological uncertainties in achieving this, then you could potentially be entitled to a claim - even if the project itself is unsuccessful.

What is R&D Tax Relief?

R&D Tax Relief is a government initiative that encourages innovation and increased spending on R&D activities by providing a potentially significant corporation tax benefit.

There are two schemes depending on the size of your business. A company would qualify for the SME scheme if:

  • You employ under 500 staff and
  • Either your turnover is less than €100 million or the company’s balance sheet is less than €86 million

Any business exceeding the above would fall into the “large company scheme” for R&D purposes. Under this scheme, you could claim up to 10p for every £1 of qualifying expenditure.

For profit-making SMEs there is an average tax benefit of up to 16.5% - and the average claim made under this scheme so far in the year 2022/23 is worth £36,000 in cash. Loss-making SMEs can also benefit by claiming up to 19p for every £1 of qualifying expenditure as a cash payment.

Who qualifies for R&D Tax Credits?

UK businesses that incur expenditure developing new products, processes or services (or even enhancing existing ones) are eligible for R&D tax relief – and this is not limited to any specific sector.

To qualify you must:

  • Be a limited company trading in the UK for more than 12 months that is subject to Corporation Tax
  • Have carried out qualifying research and development activities
  • Have incurred expenditure on these projects

Need help with your R&D claims? Watch our video to see how we can help you unlock the benefits today!

The potential scope for successful Research & Development claims may well be greater than you think.
Below is a list of sectors in which we already make successful claims:

  • Aerospace and defence
  • Automotive industry
  • Banking and finance
  • Chemicals, paints and adhesives
  • Clothing, textiles and fabrics
  • Construction and building materials
  • Electronic and electrical
  • Engineering and machinery
  • Food and drink
  • Games software industry
  • Health
  • IT hardware
  • Manufacturing
  • Household goods and textiles
  • Personal care and cosmetics
  • Pharmaceuticals and biotechnology
  • Printing and packaging
  • Software development
  • Telecommunications
  • Transport
  • Waste recycling
  • Water treatment

How can we help?

Our specialist R&D team is made up of qualified accountants and tax experts who, quite uniquely, have a wealth of industry experience, many of them with additional scientific and engineering qualifications. This makes them well placed to be able to review the technical elements of your business with R&D in mind.

All it takes is a simple 10-minute conversation to gather basic information to assess whether there may be qualifying expenditure. If you are already claiming R&D, it is worth getting in touch as the team can help maximise and increase the robustness of your claim.

Our R&D investigative process is fully auditable and includes the submission of a technical report to support the claim and ensure full compliance with legislation. We will also liaise with HMRC on your behalf to deal with any queries and to secure the acceptance of a claim.

The time is now!

R&D claims can be made for the previous two accounting years which are then offset against your profits, potentially leading to a significant repayment in corporation tax. Even if your company is not making a profit, you can still benefit by choosing to sell the loss to HMRC and receive cash back instead.

Timing is critical – you don’t want to be in a situation where you have missed out on a claim because of any time limits. Our R&D team is able to act quickly, so if you think there may be something worth looking into, please get in touch with us on 0121 693 5000

  • We know how vital it is to have up-to-date information on the go, so our taxapp has been developed to provide you with useful content, news and interactive tools at the touch of a button.

    Available for iOS, Android and Windows mobile phones

  • If you are VAT registered, then you may have heard of Making Tax Digital which makes it a legal requirement for you to maintain your book keeping records and submit your VAT returns in a digital format.

    We recommend our clients use Cloud accounting software for their book keeping – particularly if you are VAT registered - as it is such an efficient way of keeping tracks on your expenditure and managing your finances.

  • There are a million things to think about when starting a new business so anything that can be delegated to people who can help is a must!

    It can be overwhelming - but we’re here to help you every step of the way. And once the business is set up, we can support you on an ongoing basis with your accounts and corporation tax returns, cashflow, forecasting, growing your business or anything else.


Get In Touch

Please get in touch if you want to talk more about how we can help you.
We offer an initial consultation free of charge which gives us the chance to meet and discuss your needs, with no obligation.

Accountants in Solihull

Lumaneri House, Blythe Gate, Blythe Valley Park, Solihull, B90 8AH

0121 693 5000

Accountants in Halesowen

West Point, Second Floor, Mucklow Office Park, Mucklow Hill, Halesowen, B62 8DY

01384 250202

Jerroms is a trading style of both Jerroms Business Solutions Limited 08923059 and Jerroms GCN Limited 08433008.
Registered office for each of these companies is: Lumaneri House, Blythe Gate, Blythe Valley Park, Solihull, B90 8AH