UK R&D Tax Relief
How can Intelligentsia Consultants help your company?
We can prepare your company’s claim for an R&D tax credit to HMRC.
Our specialists have extensive experience of new product and service development as well as accounting. We can help to accurately pinpoint your company’s eligible R&D costs, prepare the necessary paperwork, and liasise with HMRC.
We work on a no win-no fee basis.
If you would like to make an enquiry, please feel welcome to contact us.
What are R&D tax credits?
R&D tax credits are a tax relief scheme that give money back to companies for R&D work that they have done to improve their existing products, services, processes, or to create new ones. The government scheme acts as a stimulus to encourage companies to innovate.
The scheme applies to companies that are profit or loss-making, with the possibility to claim back overpaid tax from the previous two years. It works by increasing the cost of a company’s R&D spend by a multiplying percentage (eg. 230%) and thereby reducing the declared profit (and the tax on that profit).
Which companies are eligible?
Any company is eligible that improves its products, services, processes, or develops new ones. The size of a company is not an issue although smaller companies benefit more.
The scheme applies to many kinds of innovative activity. For example, introducing new functionality to a product, improving the efficiency of a service, or reducing the environmental impact of an industrial process.
What are R&D tax credits worth?
The value of R&D tax credits depends on several factors including how much the company has spent and on what, how profitable the company has been, and the year in which the R&D work was done.
Approximatley, it is worth between 8 to 30p per pound spent on R&D, which can take the form of cash (for smaller companies) or a reduction in future tax bills (larger companies).
Typically, the majority of the eligible expenditure is labour costs, but there are many other types of expenditure that can be included: both those spent directly on the R&D work, and parts of indirect costs too.
