Innovation and Research & Development tax reliefs
Supporting your innovative company in claiming valuable R&D and other tax reliefs.
Research and Development tax reliefs (R&D)
Could your company take advantage of the UK Government's tax incentives for R&D?
The incentives could lessen your tax burden or give your business a much-needed cash infusion.
The project doesn't have to be successful - failed projects can be great examples of qualifying R&D.
The final product or method need not be entirely original. It may be sufficient to invest in developing a product or service to make it more effective, affordable, or sustainable in order to be eligible for certain R&D support.
R&D tax reliefs support companies that work on qualifying innovative projects in science and technology through access to reduced corporation tax liabilities and payable tax credits.
There are two R&D schemes - one for SMEs and one for large companies (Research & Development Expenditure Credit (RDEC)).
In certain circumstances where your company is a subcontractor, or has received a grant or subsidy to help with the R&D, it may be either wholly under the RDEC scheme (irrespective of the size of the company) or it may be partly under the SME R&D scheme and partly under the RDEC scheme. The two schemes are expected to be merged 1 April 2024 and consultation is ongoing on the new scheme structure.
At present, a profitable company, paying 25% corporation tax could see returns of up to 21.5% under the SME scheme and 15% under the RDEC scheme.
R&D key requirements
Undertaking a qualifying project
Incurring qualifying costs
From 1 April 2024 there is a refocussing of qualifying costs to UK activities so many overseas costs will cease to qualify.
Addressing claim administration requirements
For claimants who have not claimed in the past three years, there is a pre-claim notification requirement which must be made within six months of the end of the accounting period. The claim itself must be submitted within two years of the end of the accounting period.
From 1 April 2024 there is a refocussing of qualifying costs to UK activities so many overseas costs will cease to qualify.
For claimants who have not claimed in the past three years, there is a pre-claim notification requirement which must be made within six months of the end of the accounting period. The claim itself must be submitted within two years of the end of the accounting period.
Patent Box
Companies that produce revenues from patented products or methods they developed can claim the Patent Box, a 10% rate of corporation tax.
The R&D regime and Patent Box regime complement one another to encourage and support a UK business throughout its entire invention lifecycle.
With the increase in the UK corporation tax rate to 25%, the savings offered by the Patent Box are more attractive than ever.
The qualifying conditions you need to meet
We examine the important issues that will shape the future of R&D tax reliefs and the UK Patent Box. Our thought leaders provide insights on upcoming changes to these important reliefs.
Our services can be customised to fit your needs
R&D claim support
R&D enquiry support
Using R&D claims
R&D claim support
R&D enquiry support
Using R&D claims
Patent box advice
Patent box claim support
Due diligence
Patent box advice
Patent box claim support
Due diligence
Industry knowledge, pragmatic
advice, tailored service
We care about your business. Close working relationships are at the heart of our service delivery which sees our clients stay with us year after year, trusting us for our specialist advice and open dialogue.
Making the most of innovation incentives. With extensive knowledge and experience of the UK R&D tax credits and UK Patent box we are well placed to support your business.
We help you to make smart decisions that have lasting value. Working with you, we will help you understand the projects and activities that can qualify for UK tax incentives.