R&D Tax Credits

What are R & D Tax Credits?

(R&D) Research and Development Tax Credits are a government incentive that are designed to reward UK companies for investing in innovation.

Any company that is spending money on developing new products, processes or services; or improving existing ones, are eligible for R&D tax relief. If you’re spending money on your innovation, you can make an R&D tax credit claim to receive either a cash payment or Corporation Tax reduction. The area for identifying R&D is everywhere – in fact, it exists in every single sector. And if you’re making a claim for the first time, you can typically claim R&D tax relief for your last two completed accounting periods.

To benefit from R&D tax incentives, you must:

1. Be a limited company in the UK that is subject to Corporation Tax.
2. Have carried out any qualifying research and development activities.
3. Spent money on these projects.

If you have questions about your eligibility for R&D tax credits, or are wondering how much they might be worth to your business, get in touch with our team.