The R&D tax relief scheme was introduced in 2000 and is designed to encourage innovation in the UK. If your company carries out research and development then you may be eligible for relief. The relief can reduce your tax bill or increase taxable losses which can be surrendered for a cash credit from HMRC. This can reduce the cost of R&D by up to 33%. You may be carrying out qualifying R&D activities if you are incurring costs when developing new products and processes or seeking to improve existing ones.
HMRC released statistics in September 2016 showing total claims in the period of 22,445, a 31% increase from the prior year. Although this increase is encouraging, we consider that many businesses believe they are not eligible for R&D tax relief when in fact, they may be entitled to receive significant benefits under the scheme.
The relief is available to companies of all sizes and provides an additional tax deduction when calculating a company’s taxable profits. However, there are requirements to fulfil and you must be seeking to make advancements using scientific or technological means. To find out if you qualify for R&D tax relief please download our R&D Tax Briefing document by clicking here.
There are two schemes in existence dependent on whether the company is an SME or not; as the relief works differently for small and large companies. Wilson Wright are able to provide guidance on qualification, claims and general advice. With years of experience within this area our team are ideally placed to provide you with all the necessary support you may need.
We’re here to make it easier. Get in touch with us today to speak to an expert.
Wilson Wright LLP
Latest posts by Wilson Wright LLP (see all)
- Wilson Wright is ‘Making it Count’ as it celebrates its 125th anniversary - October 10, 2018
- Wilson Wright included in the Accountancy Age 50+50 list - September 20, 2018
- Independent City accountancy firm joins the Confederation of British Industry - September 3, 2018