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R&D tax credits

We know R&D tax credits are important to you and you can’t afford delays in the repayment due to enquiries from HMRC. That’s why you need to engage an R&D consultant you can trust. We're here to fully support your business with preparing and claiming R&D tax relief.
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What are Research and Development tax credits?

What are R&D tax credits?

Research and Development tax credits, also known as R&D tax credits, are an incentive provided by the UK government to encourage companies to undertake innovation and development activities. The relief is based on the R&D costs that your company incurs and can be used to either reduce the amount of tax that your company pays or to receive a cash payment from HMRC.

Speak to our expert

Iain Butler

+44 (0)20 7556 1343
butleri@buzzacott.co.uk
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What are R&D tax credits?

Research and Development tax credits, also known as R&D tax credits, are an incentive provided by the UK government to encourage companies to undertake innovation and development activities. The relief is based on the R&D costs that your company incurs and can be used to either reduce the amount of tax that your company pays or to receive a cash payment from HMRC.

Why make a claim?

Why make a claim?

Successfully claiming R&D tax relief will: 

  • Provide your business with a non-repayable cash payment or reduce the amount of tax that your company pays, supporting cashflow. 
  • Help encourage your businesses to invest in R&D and boost innovation.
  • Help put the UK at the forefront of R&D and innovation around the world.
Are you eligible to claim?

Are you eligible to claim R&D tax credits?

Any company in any industry may be eligible for HMRC R&D tax credits, however, you must be undertaking development activities that seek to achieve an advance in science or technology, or activities that directly contribute to advances by resolving scientific or technological uncertainty. While this sounds very complicated, please don’t be put off, in reality a huge number of businesses are doing this without realising. The outcome of the project can be tangible, such as new products or processes, or intangible, such as knowledge or cost improvements, even failed projects can qualify.

What costs qualify for R&D tax relief?

What costs qualify for R&D tax relief?

The following costs may qualify for relief:

  • Agency staff - costs for those directly or indirectly involved in R&D
  • Employee costs - directly or indirectly involved in R&D
  • Materials and consumables - items used in the R&D project
  • Subcontracted R&D expenditure
  • Software - used by the R&D team
  • Utilities - fuel, power or water

Many businesses are unaware that claims can be made for capitalised expenditure and miss out on significant extra benefits. We can assist in identify any qualifying capital expenditure and advise on how to maximise your R&D claim benefit.

What are the cash benefits of claiming R&D?

What are the cash benefits of claiming R&D?

The resulting cash benefits of a successful R&D claim, based on different levels of qualifying costs, are below.

Costs qualifying for R&D Benefit when surrendering losses for a cash payment from HMRC Reduction in tax payable where 86% relief is used to offset future corporation tax liabilities of your company
£100,000 £26,970 £21,500
£500,000 £134,850 £107,500
£1,000,000 £269,700 £215,000

The businesses and sectors we serve

How we work with you

How we work with you

Many businesses claim R&D tax relief and it can be an essential source of much needed cash. However, we find that many are unaware of what projects and expenditure types are eligible, and we also see mistakes in claims. As a result, your claim may be missing expenditure that could rightfully be claimed, or it may include costs that aren’t qualifying, which could mean risking an HMRC enquiry into your claim.

We take time to listen to your business to understand the goal you’re trying to achieve with your innovation, so we can help you overcome problems and challenges along the way. By being open and honest, we aren’t afraid to challenge our clients to make sure that your claim is correct and you’ve optimised the benefit. We want to help you understand your eligible activities, without holding you up, so you know how to build a robust R&D claim. We're here to fully support you with preparing and claiming R&D tax credits.

Received an R&D enquiry from HMRC?

HMRC is taking action on erroneous or fraudulent R&D tax credits UK claims by issuing R&D compliance checks for claimants. If you have concerns that your existing claims might be incorrect, the best approach is to have your claim reviewed by an independent regulated firm, such as Buzzacott, to look for issues that HMRC might challenge.

If you’ve received an R&D enquiry letter, you might be facing months of correspondence and a delay in the credit being paid to you. Worst case scenario, HMRC could reduce the claim value or even issue penalties for a poorly prepared claim. With a bit of support, the complex enquiry process can be less daunting and time-consuming.

We understand what HMRC is looking for in their requests and will guide you through the process calmly, providing realistic advice on what you need to do and when.

Fixing a claim

Other incentives available

Your businesses should be looking at all R&D incentives to support you through the its lifecycle. To find out more about these incentives, please click the links below.

Other incentives available
Get in touch

If you would like to speak to one of our R&D experts to find out more about how we can help, please get in touch via the form below or call +44 (0)20 7710 3330.

Get in touch
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