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Research and Development Tax Credits are a government incentive that are designed to reward UK companies for investing in innovation
(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.
SMEs are able to claim up to 33p for every £1 spent on qualifying R&D activities. The average claim made by SMEs in the UK is £53,876 (2016-17).
Large companies are able to claim up to 10p for every £1 spent on qualifying R&D activities. The average claim made by large companies in the UK is £272,881 (2016-17).
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.