R&D tax credits explained

Incentivizing innovation and driving growth, R&D tax incentives have the potential to revolutionize your business.

What are R&D tax incentives?

Research and development (R&D) tax credits are a government initiative designed to reward UK companies for innovative investments. They are a crucial funding for businesses to put towards speeding up their research & development tax relief near Me, hiring new staff, and ultimately growing.

How do R&D tax incentives work?

Businesses that invest creating new items, procedures, or services; or enhancing current offerings are eligible for R&D tax credits. If you’re spending money on your innovative efforts, you could apply for R&D tax relief to receive either a monetary refund and/or corporate tax deduction. The scope for identifying R&D is huge – in fact it is present in every single sector. And if you’re making a claim for the first time, you can generally apply for R&D tax relief for your last two completed accounting periods.

Is my business qualified for R&D tax credits?

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

Operate as a UK limited company that is subject to Corporation Tax.

Have carried out qualifying research and development activities.

Have spent money on these projects.

Who is eligible for R&D tax credits?

R&D can occur in any sector. It is present in everything from food production to chemical engineering, manufacturing and building to renewable energy.

What qualifies as R&D?

The government’s R&D criteria are purposefully broad. Regardless of size or sector, if your business is taking a risk by attempting to ‘resolve scientific or technological unknowns’ then you might be performing qualifying activity. This could involve:

Creating new items, processes, or services.

Changing or altering an existing product, process, or service.

If you’re not sure if your project is possible or you don’t know how to achieve it in practice, you could be addressing technical unknowns and be performing eligible R&D.

Within the government’s recognized R&D definition, R&D does not need to have been fruitful to qualify.