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