Back | How to Claim R&D Tax Credits

Research & Development is an important feature of modern finance as they encourage innovation and enhance incentives to develop new and useful products and services.

Research and development (R&D) tax credits are a government incentive designed to reward UK companies for investing in innovation. They are a valuable source of cash for businesses to invest in accelerating their R&D, hiring new staff and ultimately growing.

Companies that spend money developing new products, processes or services; or enhancing existing ones, are eligible for R&D tax relief. If a company spending capital on innovation, they can claim R&D tax credits as either a cash payment and/or Corporation Tax reduction.

The scope for identifying R&D is huge, in fact, it exists in every single sector. And if an organisation is making a claim for the first time, they can typically claim R&D tax relief for their last two completed accounting periods.

To claim R&D tax credits your company must :-

  • Be a limited company in the UK that is subject to Corporation Tax.

  • Have carried out qualifying research and development activities.

  • Have spent money on innovative projects or services.

  • More details can be found on the UK government website related to R&D Tax Relief for SMEs

  • There are many UK-based companies that will assist SMEs in the process of preparing and claiming R&D Tax Credits.

    1. JumpStart Their Technical Analysts are industry sector experts and equally knowledgeable when it comes to the scheme legislation.

    2. PwC UK Have helped many companies like a large tech business, an automotive investor, a global engineering company and a large pharmaceutical company.

    3. Accelerate Funding (along with many others) provides fast access to government financial support, grants and incentives for business.

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