R&D Tax Relief

If you research or develop a new process, product or service (or improve an existing one), you could meet the criteria for R&D reliefs.

Some companies will be eligible for up to 230% on their qualifying R&D costs. So, if your company is paying Corporation Tax at the current rate of 19% and spends £100,000 on qualifying R&D it could save tax of £43,700. Loss-making companies can surrender their losses in certain circumstances in return for a payable tax credit.

For example, your business spent £10,000 on R&D activities. This is uplifted by 130% – meaning your investment is treated as £23,000 for tax purposes. If your business was profitable in the period you could claim against your corporation tax bill, or if you’re loss making you could be entitled to a cash payment from HMRC.