Knowledge Base

R&D tax relief

How R&D tax relief can help alleviate financial strain due to Coronavirus

Can R&D tax relief be a lifeline for your business? Small and medium-sized enterprises (SMEs) are the lifeblood of the UK’s economy so don’t let the name fool you. According to the Department of Business, Energy and Industrial Strategy (BEIS), 99.9% of the UK’s business population are SMEs, which means large businesses only make up …

How R&D tax relief can help alleviate financial strain due to Coronavirus Read More »

costs

What costs qualify for SME R&D tax relief?

For a business to successfully claim R&D tax relief benefits, it needs to understand what are the qualifying costs. HMRC has a specific guideline of the type of costs that are eligible and not eligible for the R&D tax credit. Depending on whether a company is loss-making or profitable, a small or medium-sized enterprise (SME) can receive between 14.5% and 33% of its R&D cost back as cash or tax credit. Overall, direct and externally provided staff, subcontracted R&D, consumables, energy costs, software, trials, prototyping and independent research may all qualify for R&D tax relief. Costs that are not eligible are production and distribution of goods and services, marketing, payments for the use and creation of patents/trademarks, cost of land and hosting, as well as capital expenditure.

tax credit

All you need to know about RDEC vs SME R&D Tax Credit, and what’s the difference?

A company that is undertaking innovative research and development work may be eligible to claim R&D Tax Credit under one of two schemes Research and Development (R&D) tax credit is a valuable government tax initiative that is designed to encourage and reward companies investing in R&D projects that will help further knowledge in a given …

All you need to know about RDEC vs SME R&D Tax Credit, and what’s the difference? Read More »

Close Bitnami banner
Bitnami