R&D Tax Credits Explained

R&D tax credits are a tax incentive designed by the Government to reward innovative companies who spend money on developing new products, processes, or services; or enhancing existing ones.

R&D for tax purposes takes place when an R&D project seeks to achieve an advance in science or technology, appreciably improving on the current state of the art.

You could reclaim up to 33% of costs spent on:

  • Staffing costs
  • Subcontracted R&D
  • Externally Provided Workers (EPWs)
  • Consumables
  • Software
  • Payments to subjects of clinical trials

Our Approach

Our R&D Tax Credit specialists develop your R&D Tax Credit claim alongside your technical and finance staff to maximise your potential claim value. From working with hundreds of start-ups to large companies, we can quickly and accurately identify what HMRC class as qualifying Research and Development expenditure. Also, if you’ve secured a grant we can support you with the RDEC scheme.

The Benefits of R&D Tax Credits

R&D tax credits or RDEC have a number of advantages for both small businesses and large enterprises. Tax credits are an accessible form of funding, that allows companies to reclaim up to 33% of R&D expenditure. If the costs are eligible, some companies can receive a cash injection back into their business with very little turnaround time compared to other forms of funding.

Tax credit claims can also be backdated up to two accounting periods, so if you’ve already been carrying out R&D activities such as developing new products or processes for some time, you could be eligible to claim this back.