Research & Development Tax Relief

Do you undertake research and development?  If so, your business could be eligible to receive thousands of pounds in tax relief.

We are specialists in the Research & Development Tax Relief and have submitted many successful claims for clients, either enhancing the tax relief available or receiving a tax credit paid by HM Revenue & Customs directly to our clients.

The opportunities for making a claim are often overlooked with business owners and many non-specialist accountants overestimating the level of innovation required to claim. Projects qualifying for Research & Development Tax Relief include those seeking an appreciable improvement in science or technology.

So, if you are paying to solve technical problems there may be scope to claim.  Examples would include:

  • Modifying a manufacturing process
  • Developing bespoke software
  • Creating a new product or improving an existing one

Eligible companies can obtain tax relief on qualifying expenditure reducing taxable profits or creating (or increasing) tax losses which can be sacrificed to HM Revenue & Customs in return for a cash repayment.

The relief available is generous and an SME incurring £100k of qualifying costs could save in the region of £25k in tax.  Claims can go back two financial years, so first-time claimants can particularly benefit.

Summary of Research & Development Tax Relief for SMEs

Tax year

Enhanced deduction*

Payable credit (loss making)

2018/19

230%

14.50%

2019/20

230%

14.50%

*Enhanced deduction is the total amount of the actual expenditure, plus 130% relief

We focus on making the claims process simple for you.  Initially we will assess your potential eligibility before identifying qualifying costs completing the process and necessary submissions to HM Revenue & Customs on your behalf.

If you would like to find out more about the Research & Development Tax Relief please get in touch with the office on 01228 904 904 or email leannet@seavorchartered.co.uk.

ICAEW Chartered Accoutnants Logo
The Chartered Institue of Taxation LogoThe Chartered Institute of Taxation
The Association of Taxation Technicians LogoThe Association of Taxation Technicians
Seavorchartered Xero Certified Advisors and Gold Partners