Research & Development Tax Savings

R&D Tax Credits

You may be eligble for Research & Development savings on your corporation tax bill.

Research and Development Tax Credits are a UK tax incentive designed to encourage companies to invest in R&D. Companies can reduce their corporation tax bill or claim payable cash credits as a proportion of their R&D expenditure.

This incentive is solely for small and medium sized businesses.

The tax relief allows companies to: 

Deduct an extra 130% of their qualifying costs from their yearly profit, as well as the normal 100% deduction, to make a total 230% reduction.

Claim a tax credit if the company is loss making. Worth up to the 14.5% of the calculated loss. 

To qualify you need to be a SME and show how your project meets the definition of R&D.

Projects that count:

  • Looked for an advance in science and technology
  • Had to overcome uncertainty
  • Tried to overcome this uncertainty
  • Could not be easily worked our by a profession in the field

Your project may research or develop a new process, product or service or improve on an existing one.

To see if you can benefit from R&D Tax Savings click your industry from the list.

  • Construction

  • Engineering

  • Pharmaceutical Health
  • Agriculture
  • Architecture
  • Biotechnology
  • Clothing & Fashion
  • Cosmetics & Skincare
  • Digital Media & Gaming
  • Clothing & Fashion
  • Distribution & Logistics
  • Energy & Utilities
  • Food & Drink
  • Foundries
  • Injection Moulding, Plastics & Rubber
  • Manufacturing
  • Marine, Aerospace & Rail
  • Materials & Chemicals
  • Medical Devices
  • Packaging
  • Printing
  • Software
  • Telecommunications
  • Travel Software
  • Waste Management & Recycling

Potential Patent Box Claims 

Companies that hold patents could qualify for a reduced corporation tax rate of effectively 10% on profits derived from those patents. Any company that does not hold a patent should be reviewing it’s technological developments to consider it’s eligibility to apply for a patent and benefit from the reduced tax rate. 

The technical hurdle to apply for a patent is not as high as you may think. Similar to R&D Tax Relief, what may seem as typical technology in the office or field, may be patent-able and eligible for a 10% rate of tax. 

Potential Capital Allowance Claims

Capital allowances enable commercial property owners to obtain tax relief relating to capital expenditure embedded within their building. 

Many businesses are missing out on valuable capital allowances available not only on commercial property owned for years but also on the; 

  • Acquisition,
  • Construction,
  • Refurbishment; or
  • Extension of commercial property.

We can help you save tax. Get in contact with us for more advice on R&D, Patent Box Claims and Capital Allowance Claims. 

Call us: 01257 429252

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