The Benefits of R & D Tax Relief

R&D isn’t just for large companies. R&D can take place in any sector, and in businesses of any size.

Businesses can use R&D to discover competitive advantages, whilst stimulating growth. There’s also sizeable tax benefits for investing in R&D. We’ve listed some key benefits below;

R & D tax relief: What you can gain

Competitive advantage

R&D can help you develop a unique proposition within your market. It can help differentiate you from other businesses who deliver similar products or services.

R&D can also drive product improvement or innovation, increasing your productivity and ultimately profitability too.

Tax relief

If you invest in R&D, you can claim R&D tax relief to reduce your company’s tax bill. Only qualifying R&D expenditure will be considered for tax relief purposes.

Our R&D experts can help guide you through the process of identifying what does or doesn’t qualify, along with helping to submit your claim. The average amount received per R&D claim by our clients is over £88k.

Selling your USP

Many entrepreneurs and small businesses have turned a profit by selling the results of successful R&D ventures to larger more established firms.

This is especially prevalent in the software sector, but examples can be seen across a number of sectors, with our expert team equipped to advise companies across a variety of industries.

Marketing benefits

R&D successes let companies create highly effective marketing strategies around releasing a new product or an existing product with new features.

These new features can increase market share by giving customers something they’ve never seen before.

 

Additionally, if you wanted to read any more of our guides on topics surrounding R&D claims, you can find links to all of our guides here.

Who are you?

SME

Fewer than 500 staff and either less than:
£100 million turnover or £86 million gross assets.

Large Company

Greater than 500 staff and either more than:
£100 million turnover or £86 million gross assets.

If you’re an SME with;

  • less than 500 employees,
  • annual turnover of less than £100million, and,
  • balance sheet assets of less than £86million,

You can claim back up to 33% of your costs.

  • £3.5bn was claimed in R&D tax relief in 2017 (25% increase from the previous year)
  • Only £350m of this was claimed by companies in the North of England
  • 85% of claims came from SME’s

If you’re a large company with;

  • more than 500 employees, and
  • annual turnover of more than £100million, or
  • balance sheet assets of less than £86million.

You can claim back up to 13% of your costs.

  • £3.5bn was claimed in R&D tax relief in 2017 (25% increase from the previous year)
  • Only £350m of this was claimed by companies in the North of England
  • 15% of claims came from large companies

R&D Tax Relief Calculator

Receive an estimate on your possible claim value with our calculator tool

Simply drag your slider across to your annual R&D spend and you’ll be able to see your potential claim value

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R&D Tax Relief Guides

R&D tax relief explained

When it comes to understanding R&D tax relief, it is important that you are fully aware of a few key factors…

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The benefits of R&D claims

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How to check your eligibility

We help businesses around the UK to explore their eligibility for R&D tax relief, with qualifying factors being…

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The R&D claim process

As you pursue a possible R&D tax relief claim, it is important that you proceed with expert guidance, ensuring that…

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R&D tax relief FAQs

There are a range of key questions we are asked by clients around the UK regarding their R&D tax relief, such as…

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R&D sector specialities

We have helped businesses across a variety of industries to make R&D tax relief claims, in sectors such as…

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