Research & Development Tax Relief

In the UK companies can claim tax relief for their Research & Development (R&D) activity. The process of applying for R&D tax relief can be a complex and time-consuming process, Your Finance Team is experienced at submitting R & D tax relief claims on their client’s behalf to HMRC.

Understanding R&D Tax Relief in the UK

Research and Development (R&D) tax relief supports companies that work on innovative projects in science and technology. To qualify for Research and Development (R&D) tax relief in the UK, companies must meet specific criteria:

  • Project Focus: The initiative should address a specific problem.
  • Scientific or Technological Advancement: The goal must be to advance knowledge in science or technology.
  • Business Relevance: The project should relate directly to the company’s current or intended trade.
  • Overcoming Uncertainty: The company needs to demonstrate how it tackled scientific or technological uncertainties.
  • Complexity: The challenge should not be easily solvable by experts in the field.
  • Novelty: The innovation can still be considered an advance even if similar work exists, provided it’s not publicly accessible.

Projects can involve creating or improving a process, product, or service.

Eligible R&D Expenditures

The following costs are eligible for R&D tax credits:

  • Employee salaries for those engaged in R&D activities
  • Software specifically used for the R&D project
  • Consumable materials
  • Subcontracted R&D expenses (65% of costs)
  • Externally provided workers (with restrictions)

Understanding these requirements helps businesses leverage R&D tax incentives effectively.

How can we help?

The average R&D tax claim is worth over £64,000 so you must find out if your company and project qualify for this tax relief. We offer a free initial R&D assessment of your project and if we think your project could qualify for R&D tax relief, we will work with you to help you process your claim from start to finish.

Just contact us to find out if your project is eligible. 

Request a Consultation Today

We can provide you with a quote or give you the friendly and expert accounting advice you need. Alternatively, talk to us directly at 01737 652 221.

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