R&D Knowledgebase

• The Incoming Cap on SME R&D Tax Relief Claims
  From 1 April 2021, SMEs claiming a tax credit of more than £20,000 will need to check to see if they are affected by the PAYE/NIC cap of 3x PAYE/NIC costs +£20,000. Richard Hill explains what this means for your business.
• Why Invest in Research and Development?
  The UK has always been a hub for innovation, but this comes with risks - investment, cost, time. To help stimulate R&D, the Research and Development Tax Credits scheme provides valuable tax relief to support companies.
• What are Research and Development Tax Credits?
  R&D Tax Credits are one of the most powerful tax planning tools available to UK companies, offering corporation tax relief or cash back.
• How does the SME R&D Tax Credit Scheme Work?
  The SME Scheme is open to qualifying limited companies that invest in qualifying activities, and can be worth up to 33p for every £1 spent.
• Is there a deadline for making an R&D claim?
  Companies can make an R&D claim providing it is still in scope.
• Will making a claim trigger an HMRC investigation?
  Making an R&D Tax Credit claim will not necessarily trigger an enquiry - HMRC regularly review company's tax affairs to help with compliance.
• How can an R&D Tax Credits specialist help my business?
  Engaging the services of an R&D Tax Credits specialist can greatly enhance your chances of a successful claim. Discover the various ways these professionals can support your business, from identifying qualifying projects to preparing comprehensive claim documentation.
• Is making an R&D claim complicated or time-consuming?
  Research and Development Tax Credits should form part of your company's tax planning strategy, and while there may be a time commitment, the benefits massively outweigh this.
• Can I claim R&D Tax Credits for previous financial years?
  The ability to claim R&D Tax Credits for previous financial years can be a significant boon for businesses that have not yet taken advantage of this incentive. Learn about the retrospective claiming process and the timeframe within which you can submit claims for past R&D activities.
• How long does it take to receive R&D Tax Credit refunds?
  The timeline for receiving R&D Tax Credit refunds is an important consideration for businesses looking to improve their cash flow. Find out the typical processing times and factors that may affect the speed at which your claim is processed and paid.
• What are some common misconceptions about R&D Tax Credits?
  Misconceptions about R&D Tax Credits can prevent businesses from taking advantage of this valuable incentive. Uncover the truth behind these common misunderstandings and learn how your business can benefit from this UK government scheme.
• What is a Competent Professional?
  For R&D Tax purposes, a competent professional is someone in your business with the experience, skills and success in a given area of science or technology.
• How can R&D Tax Credits benefit my business financially?
  R&D Tax Credits are an essential financial tool that can significantly benefit your business. Gain insight into the various ways these tax reliefs can improve your company's cash flow, increase investment in innovation, and support long-term growth.
• What is the difference between SME R&D Tax Credits and RDEC?
  The UK government offers two distinct schemes for R&D Tax Credits – the Small and Medium-sized Enterprises (SME) scheme and the Research and Development Expenditure Credit (RDEC). Delve into the key differences between these two programmes and determine which is best suited for your organisation's needs.
• What types of R&D expenses qualify for tax relief?
  The scope of R&D expenses that qualify for tax relief is often a source of confusion for many businesses. Get a clear understanding of which costs are eligible under the UK R&D Tax Credits scheme, and how these expenses can contribute to a successful claim.
• How do I claim R&D Tax Credits in the UK?
  Navigating the process of claiming R&D Tax Credits can seem daunting, but with the right guidance, it doesn't have to be. Learn about the necessary steps and documentation required to make a successful claim, ensuring that your business maximises its potential benefits.
• Who is eligible for R&D Tax Credits in the UK?
  To qualify for R&D Tax Credits in the UK, a company must be a corporation subject to corporation tax and must be involved in R&D activities that seek to advance knowledge or capabilities in a field of science or technology. The project should aim to resolve scientific or technological uncertainties and must have a clear objective. Both small and medium-sized enterprises (SMEs) and larger companies can apply for R&D Tax Credits, but they will be subject to different schemes depending on their size, turnover, and staff headcount.
• R&D Knowledge Base
• What are Research and Development Tax Credits?
  R&D Tax Credits are a UK government initiative designed to incentivise companies to invest in research and development activities. The scheme offers tax relief or tax credits to companies that undertake qualifying R&D projects, ultimately helping to reduce their Corporation Tax liability or providing them with a cash payment. The R&D Tax Credit scheme covers a wide range of industries and is available to businesses of all sizes, including start-ups, SMEs, and large corporations.