Our specialist R&D tax team can help you identify whether you’re eligible and support you with submitting a claim.
Research and Development Tax Relief
Many UK SME companies don’t realise that they qualify for valuable research & development (R&D) tax relief.
Our specialist R&D tax team can help you identify whether you’re eligible and support you with submitting a claim.
No matter the size or stage of your business, our team of dedicated and experienced R&D tax credit experts is here to assist you in identifying the areas where you can benefit from the R&D tax incentive scheme. We will provide you with expert advice on how to make your claims and guide you through the filing process with HMRC.
What is R&D tax relief and who qualifies?
What is R&D tax relief and who qualifies?
The R&D tax relief scheme was created to fuel innovation in the UK and provide compensation to limited companies engaged in research and development. Currently, the scheme is categorised into two brackets:
- the Small Medium Enterprise (SME) scheme
- one for large companies, the Research and Development Expenditure Credit (RDEC) scheme
For accounting periods starting on or after 1 April 2024, the schemes will be merged into an amended RDEC scheme, though are some additional benefits for R&D intensive companies.
Broadly, to qualify for an R&D tax credits claim, a company’s project must seek to achieve an advancement in science or technology. The project should address an area of scientific or technological uncertainty and be innovative.
A company can then claim either enhanced corporation tax deductions against its taxable profits or a tax credit, for the expenditure that qualifies.
Benefits of applying for R&D tax relief
Benefits of applying for R&D tax relief
- Aids cashflow
- Allows for further investment into your business
- Allows for investment in your staff
- Opens opportunities for other business decisions otherwise out of reach
We successfully help businesses claim for R&D tax relief that are:
- Investing in projects, products or processes that result in improvements
developing a new product/service or enhancing existing products or processes - Investing in a product or service to make it more efficient, cheaper, or more sustainable
- Undertaking activities that are central to the business or making an investment in back-office operations
Assistance with your claim
Assistance with your claim
We will assist you in preparing a comprehensive technical and financial analysis of the claim, in full compliance with HMRC’s latest disclosure requirements.
Our team is dedicated to providing you with expert tax planning advice to optimise the impact of your claim. Once your claim is filed, we will personally oversee its processing by HMRC, ensuring that your refund is promptly delivered to you.
Should HMRC decide to review your claim, we will handle all elements of the enquiry process on your behalf, guiding you every step of the way until a conclusion is reached.
We have a wealth of experience of making R&D tax relief claims in a wide range of sectors, and can make the process as quick and efficient as possible for you. We take time to understand your business, and can quickly identify projects with potential R&D tax relief claims, and manage the claim process on your behalf.
The R&D tax credits eligibility criteria
The R&D tax credits eligibility criteria
If you have a problem and use some element of science or technology to try to fix it, then you might have the potential for a claim.
Depending on your company's accounting period, you must make a claim within two years of incurring the eligible expenditure.
Below are examples of costs that may qualify for R&D relief:
Staffing costs and agency workers for time spent directly and indirectly on R&D projects.
Consumable items including power and water costs, software used for R&D activities.
Payments to sub-contractors for certain qualifying activities.
Prototype costs for developing new products.
I am grateful to the experienced team at Azets for supporting Incredible Husk through the R&D tax credit process and general business advisory services. The subject matter expert team of technologists and tax specialists lead by Stuart Bentley delivered a thorough, professional, and speedy service, with clear communication throughout. As a first-time claimant, the complexities appeared daunting, but the knowledgeable team supported us through both the technology and financials, and we are delighted with the high-quality result. I would undoubtedly recommend Azets to other businesses looking for outstanding R&D tax credit claim service. The tax benefit we received has been invaluable and has helped us continue innovative work in our field.
Keith Ridgeway, CEO
Incredible Husk International Group
Whatever your size or industry, our local teams are ready with practical, personal advice.
Tax planning is a phrase to fill some with organisational dread, but at Azets we plan with efficiency and shine a light on existing and changing ways to be as tax efficient as possible. Contact us to put a plan in place for the now and make it sustainable for the future.