Research & Development Tax Relief

R & D Tax Relief

Would you like to fund your business courtesy of HMRC?

Would you like to get £33 back for every £100 spent?

R&D Tax Relief

R&D tax relief is the most valuable tax relief afforded to UK companies. HMRC actively encourage companies who are doing R&D to claim back up to 33% of their costs.

Qualifying companies can claim back costs incurred 3 years ago.

If you make profits, you can claim an immediate refund of corporation tax. If you are loss making, HMRC will pay you a cash credit of 33% of the amount you have spent.

If you qualify, you must claim, it’s that simple!

There are strict deadlines for claiming, so you should review this now before you miss a deadline. HMRC will not pay you if you have missed the deadline.

Who Qualifies?

Limited companies carrying out qualifying R&D can claim.

So, what is qualifying R&D?

If you can answer yes to these 3 questions, you’ll probably qualify:

1. Have you done anything in the last 3 years that has been difficult and you’ve encountered technical challenges?

2. When thinking about these difficulties, have they been related to:

Science OR technology;

AND

Making something new, like a new product, process or service, OR improving a product, process or service you already do, for example to make it better, cheaper, more efficient?

3. Did you use people with appropriate skills and experience to carry out the work?

If you think you might qualify but are not sure, don’t worry, we can arrange a short discovery call to get to the bottom of it.

What costs can be claimed?

The main categories are:

  1. people costs (e.g. salaries, NIC, pensions, benefits, expenses, agency workers),
  2. materials
  3. subcontracted costs.

If you’ve spent some money on the above categories as part of your R&D, you should be making a claim!

How to make a claim?

It starts with a quick 15-minute scoping call, to identify first of all if you qualify. This is then followed by a more in depth 45-minute consultation to collect all the information needed to put the claim together.

Interested? Call Holden Associates today on 01704 320560 and speak to Jason Holden.

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