Research & Development Tax Credits
Research & Development Tax Credits
Barnes Roffe has a thorough understanding of the rules of the R&D tax credits scheme and can assist with assessing your R&D activities and identifying opportunities for you to benefit from our wide range of innovation support services.
Many businesses are missing out on valuable tax reliefs because they think they will not qualify or are not incurring eligible expenditure. The R&D tax credits scheme is not just for laboratory-based ‘blue sky’ projects. Technological, engineering and computing software projects are just some of the areas that can also qualify.
To qualify for R&D Tax Credits relief, the project needs to be seeking an advance in science or technology by overcoming scientific or technological uncertainties.
R&D rates of relief
The rates of R&D tax relief are:
- 186% of the qualifying R&D costs may be claimed as a tax deduction by SMEs.
- R&D expenditure credit available for large companies, giving relief at 14.7%.
- In addition, SMEs may choose to 'trade in' their R&D losses and receive 18.6p for each £1 spent on qualifying R&D.
- 100% allowances are also available on R&D capital expenditure.
Are You Eligible for R&D Tax Credits?
To qualify for R&D tax relief, your work must meet HMRC’s criteria:
- Innovation: Your project seeks an advance in science or technology beyond the baseline.
- Uncertainty: You are tackling technical issues that a competent professional in the field couldn’t readily solve.
- Qualifying Activities: Includes design, prototyping, testing, and development to resolve the Uncertainty.
Ineligible Activities: Routine updates, market research, or purely cosmetic improvements are not eligible.
Business areas that have benefited
- Mechanical Engineering
- Manufacturing
- Electronics
- Construction
- IT/Software
- Pharmaceuticals
- Biotechnology
How Barnes Roffe can assist with your R&D tax relief claim
Barnes Roffe is part of the Dains Group, giving you access to a team of dedicated R&D consultants from specialist backgrounds in R&D fields.
This unique technical skillset and our robust processes enable our team to achieve consistently high success rates across the UK and EU research and development grant funding schemes such as Innovate UK and Horizon Europe.
Our expertise is vital for accurately assessing our clients’ R&D activities and identifying opportunities for them to benefit from our wide range of innovation support services.
- Initial consultation: Our initial assessment helps determine your eligibility and potential benefits.
- Detailed project review: We conduct an in-depth analysis of your R&D activities to capture all qualifying costs.
- Full Claim Preparation: We compile and submit a detailed claim to HMRC, ensuring accuracy and compliance.
- Ongoing HMRC Support: If HMRC raises any questions, our team handles all communications to provide full support.
To discuss Research and Development tax credits and whether you would be eligible to make a claim, contact us for more information.
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