Has your business carried out innovative projects involving research and development and looking to claim relief through R&D tax credits?
Our team has a wealth of experience assisting businesses in making claims for R&D tax relief and is here to help advise you on suitable investment options and ensure your business is being as tax-efficient as possible while maximising development opportunities.
Research and Development (R&D) Tax Relief is an incentive setup by the government to support and encourage innovative businesses and boost spending with R&D companies.
Companies from all sorts of different industries can claim the relief, even on projects that have been unsuccessful, so long as the work is part of a specific project to make an advance in science or technology.
There are different types of R&D relief you can make a claim for, depending on the size of your company and whether or not the project was subcontracted to you.
SME R&D relief allows companies to deduct an additional 130% of their qualifying costs from their yearly profit on top of their usual 100% deduction, bringing it to a total of 230%
It also allows them to claim a tax credit if the company is loss making, worth up to 14.5% of the surrenderable loss.
You can claim SME R&D relief if you’re a SME with:
You may be required to include any linked companies or partnerships when working out if you’re an SME.
Research and Development Expenditure Credit (RDEC) can be claimed by larger companies working on R&D or SMEs that have been subcontracted work on an R&D project for a large company.
The RDEC is a tax credit calculated at 13% of your company’s qualifying R&D expenditure and is taxable.
The credit may be used to discharge the liability or result in a cash payment depending on whether your company is profit or loss making.
Subcontracted work can be claimed for if it is undertaken by:
In order to qualify for R&D relief, you must be able to explain how your project:
R&D Tax Relief isn’t always straightforward, so you may find that having an R&D accountant on your side helps to streamline and simplify the process.
Our team of specialist R&D accountants can help you to make your R&D claim and ensure you’re making the most of the tax relief available. What’s more, Ryans has a good working relationship with HMRC, meaning we’re well versed in what HMRC do and don’t approve of.
Our R&D services include:
If you need help with your R&D claim, please don’t hesitate to reach out to our team at Ryans to discuss how we can help you.
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