You don’t necessarily have to wear a white coat and work in a laboratory to qualify for R&D tax credits! If your company spends money developing new products, processes or services or enhancing existing ones, it may be eligible for R&D tax relief, leading to a significant corporation tax reduction or a cash payment for your company.

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£57,132 is the average claim value that R&D tax credits can provide to innovative UK businesses. This can reduce your tax bill or increase your taxable losses. (Source - HMRC)

 

Contact us for more information or if you’d like more advice on whether you are likely to qualify or not.

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To reward businesses for their investment, the UK Government allows you to enhance your qualifying expenditure - as shown in the example below:

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R&D Investment: £50,000  

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x  130% (enhancement rate)  =  £65,000

x  19% (Corporation Tax rate) =  £12,350

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£12,350  /  £50,000 =  25%