RESEARCH & DEVELOPMENT TAX RELIEF


 

Research and Development (R&D) relief is a corporation tax relief that may reduce your company or organisation's tax bill. 

There are still companies not claiming this hugely valuable tax relief, or not taking its full benefit. 

 

R&D covers companies in virtually every industry which are undertaking some form of innovation; this will include companies operating in the software, internet and communications fields.

From April 2012, the tax relief on allowable R&D costs is 225 per cent - that is, for each £100 of qualifying costs, your company or organisation could have the income on which corporation tax is paid reduced by an additional £125 on top of the £100 spent.

 

Alternatively, where a company is lossmaking, the R&D tax relief can give rise to tax repayments of as much as 25% of the cost, even where no corporation tax has ever been paid. This can help the start up with cash-flow which can be used to fund further R&D. 

 

Companies are missing out on claiming R&D relief because they do not fully identify those activities or costs which qualify for the relief. If you would like to find out whether and to what extent your company and activities are eligible, please do get in touch with us.

 

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