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R&D Claims

Research & Development tax claims are a UK government incentive which are designed to encourage UK companies to invest in R&D projects. This in turn leads to greater innovation that helps to drive our economy forward. If you are undertaking research & development within your business, you could be eligible for a tax claim.

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Benefits of R&D Tax Claim

Some businesses often miss out on R&D tax claims as many are unsure of if they’re entitled to it or have enough resources to complete the application process. If you’re spending money on developing new products, processes or services then you’ll be eligible to make a claim. Our team of tax planning experts specialise in helping companies of all sizes to make R&D tax claims, meaning you can quickly and easily access the funds you’re entitled to.

  • R&D Claims can add real value to your business – they’re a valuable source of cash which allows you to continue investing in R&D, hire new staff and keep growing.
  • Boosting R&D in the UK can lead to innovation and increased productivity, which is great news for the economy and can bring positive change on a global scale.
  • If your claim is accepted, you may receive either a reduction in your corporation tax bill, a repayment of tax or a tax credit.
  • If you’re claiming for the first time, you can typically claim R&D tax relief for your last 2 completed accounting periods.

Our approach

Our team of experts, including Chartered Accountants, will gather all the information required for your claim so you don’t have to worry. It’s our job to know your business, so we can define and manage every aspect of your claim, leaving you to get on with what you do best.

We’ll review the information of your activities and compile a detailed report for your claim, which will be presented to HMRC. Once submitted to HMRC, they will review and determine whether you are eligible.

Consultation Call

Get in touch and we’ll book in your free consultation call. We will then be able to find out all about your business and identify any eligible R&D activities and associated costs.

Business Claim

Based on our findings, we’ll request all necessary information to be able to put your claim together. We will prepare a detailed report explaining how your activities and costs have been assessed, and your total R&D tax credit benefit determined.

Payout

We’ll deal with the HMRC submission and if you are eligible you’ll then receive your payout.

Get started today with a free assessment!

Frequently asked questions

If your company is innovating, improving, or developing a process, product, or service, then it’s likely you will qualify for R&D tax credits. To benefit you must be; a limited company in the UK (that is subject to Corporation Tax); have carried out qualifying research and development activities; have spent money on these projects.

R&D claims aren’t just restricted to certain industries, companies in any industry may be eligible. If there was an attempt to advance the scientific or technical knowledge in your field of work – your project should qualify. Even if it wasn’t successful, you can still claim. 

If you want to know if your business qualifies, get in touch with one of tax experts for a free consultation.

  • Staff costs for any time spent on R&D, including salaries, employer’s NIC, pension contributions and reimbursed expenses.
  • 65% of any Subcontractor and freelancer costs brought in to assist with R&D. 
  • Consumable items and materials including heat, light and power that are used up or transformed by the R&D process.
  • Some types of software.
  • Payments to the subjects of any applicable clinical trials.

When accounts are prepared in sterling, convert the turnover and balance sheet totals to euros, using the exchange rate for the balance sheet date.

There are two types of schemes available for R&D tax relief. The scheme you use will be dependent on the size of your company and whether the project has been subcontracted to you or not.

The two schemes are:

1) The SME R&D tax credits scheme

For companies with fewer than 500 staff and either not more than €100 million turnover or €86 million gross assets. Most companies, including start-ups, fall into this category.

2) The large company scheme, also known as RDEC (Research and Development Expenditure Credit).

For companies with 500 or more staff and either more than €100 million turnover or €86 million gross assets.

When calculating your R&D claim we first have to look at your R&D spend. Our tax experts identify qualifying expenditure and enhance it by the relevant rate (based on the scheme incentive you qualify for). Depending on the profitability of your business this will result in a claim with either:

  • a Corporation Tax reduction if you are profit-making.
  • a cash credit if you are loss-making.
  • or a combination of the two.

HMRC look to approve any R&D tax claim payments within 28 days of your claim. There is then a potential 10 working days for the payment to be received in your bank. 

We manage the entire handover process and it couldn’t be easier. All you need to do is let your current accountants know you’re moving to Aspreys, giving them permission to release information to us. And then leave it to our client onboarding team to manage.

Don’t worry we’re in a professional industry, your accountants won’t hate you & will still talk to you afterwards. We recommend just thanking them for their efforts to assist with a smooth handover.

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