R&D TAX RELIEF
R&D TAX RELIEF
Research & Development (R&D) tax relief is a government incentive to reward businesses that are developing new or improving existing products, processes, services, devices and materials or advancing the state of knowledge in their sector, in order to remain competitive in the market.
According to HMRC R&D Tax Credits Statistics show that a significant proportion of eligible companies have not made submissions.
What is required for a company to be eligible for R&D tax relief?
- Must be an entity subject to UK Corporation Tax
- Must be a ‘Going Concern’ at the time the claim is made (SMEs only)
- It doesn’t matter whether the company is making a profit or a loss
- Relief is calculated based on expenditure incurred in the company accounts for each accounting period