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

How does an R&D claim help?

R&D can help you develop a unique proposition within your market. Carrying out research and development can help to differentiate you from competitors. R&D activities can also drive product improvement or innovation, increasing productivity and ultimately profitability too.

How can I access R&D 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 for an R&D claim, along with helping to submit your claim. The average amount received per R&D claim by our clients is over £88k.

What else does R&D tax credit offer?

Many entrepreneurs and small businesses have turned a profit by selling the results of successful R&D ventures to larger more established firms. Knowing that you could receive a portion of your R&D spending back in the form of R&D tax credits enables you to more confidently pursue the range of benefits offered by a successful R&D project.

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

Can R&D help my company grow?

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

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The R&D claim process

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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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