Research and Development (R&D) tax relief can improve your company’s cash flow by reducing its tax liability and, in some cases, by obtaining an additional tax repayment (R&D tax credit). R&D tax relief is only available for companies and there are two different research &development tax relief schemes depending on the size of your company. The scheme outlined below is available for small and medium-sized companies.

What tax relief is available?

R&D tax relief can be generally claimed on:

  • the cost of employing staff who are directly or actively engaged in carrying out the research and development
  • the cost of the materials that are used in the research and development
  • on payments made to subcontractors that are assisting with the research and development
  • Some software costs

​A business can claim relief in one of two ways. It can set 230%  of its qualifying expenditure against taxable profits; that is, it can reduce the amount of the profits on which it has to pay tax by an additional 130% of the qualifying R&D spend.  ​Where a company is making a loss, the company can surrender the loss for R&D tax credits.

Ready to make a claim? Please complete the form on the right handside or call us on 01733808075 for further information. 

How can we help?

  • Considering all tax years where claims can still be made
  • Identifying all potentially qualifying R&D activities or projects
  • Identifying the qualifying expenditure related to those activities or projects
  • Either collating a detailed R&D claim on your behalf, or helping you to prepare an in-house claim
  • Submitting the claim for your company and liaising with HMRC to ensure a quick repayment or rebate of tax
  • Providing training for your staff, along with data collection templates, to simplify claims for future R&D activities and projects

Loss-making SME Company  

£100,000 qualifying R&D spend in the period

230% R&D tax relief (notional uplift for tax only)

£130,000 additional tax deduction against taxable profits

Surrender for £33,350 tax credit at 14.5% R&D tax credit rate.

Profitable SME Company 
£100,000 qualifying R&D spend in the period.

230% R&D tax relief (notional uplift for tax only).

£130,000 additional tax deduction against taxable profits

Results in £26,000 tax saving at 20% corporation tax rate.

Research and Development Tax Relief

Odiri Tax Consultants

& Accountants