R & D Tax Credit Explained

If you’ve invested in R&D, or if you aren’t sure if what you’ve done is R&D, we can identify whether you’re entitled to tax relief. We are experts in R&D tax claims, with over 13 years’ experience in submitting successful claims.

For many businesses, R&D is a big financial commitment with potentially huge rewards – giving a valuable advantage over your competitors. In many cases, businesses don’t realise they are doing R&D; they just see it as improving the way they work.

R & D tax relief: What you need to know

Gathering the evidence for a claim

Essentially, your claim needs to demonstrate to HMRC that your research is not only technologically innovative, but also ahead of other options currently available.

That’s where our experts here at Cowgills come in. We take full responsibility from beginning to end; visiting you, gathering evidence, putting your claim together and answering any questions raised by HMRC.

All whilst making the process simple, minimising disruption so that you can concentrate on running your business.

We have a wealth of experience in dealing with R&D tax claims, with many of our team having worked in the field since the inception of R & D claims in the early 2000s.

Which businesses can claim for R&D?

Any business in the UK can potentially make an R&D tax relief claim, but 71% of claims currently come from businesses in three sectors:

  • Manufacturing
  • Information & Communication
  • Professional, Scientific & Technical

The average R&D tax relief claim is £53,876.

In the previous three years, Cowgills have saved our clients over £6m; that’s an average of £88,000 per client!

 

How would an R&D claim work for my business?

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 10% 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

£

Your claim value estimate

£50000
£1000000
Your spend estimate
£

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…

Read More…

The benefits of R&D claims

There are a range of potential benefits on offer from exploring R&D tax relief for your business, including…

Read More…

How to check your eligibility

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

Read More…

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…

Read More…

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…

Read More…

R&D sector specialities

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

Read More…