Research & Development (R&D) tax credits

Investaco Ltd have partnered with a Research & Development report specialist that focuses on retrospective and current year R&D reporting.

Together we are working with UK companies of all sizes and from every sector to help them claim back the money they are due for their R&D activity.

What are R&D Tax Credits?

Research & Development (R&D) tax credits are a government tax incentive set up to give innovative company’s money back for any costs they have incurred in this area of their business through tax credits or as a cash sum.

Essentially, they are the Government’s way of rewarding businesses that are developing new, or appreciably improving existing, products, processes, systems and materials — and thereby increasing the country’s wealth creation capacity.

HM Revenue & Customs states the following: “Your company or organisation can only claim for R&D Relief if an R&D project seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty.”

R&D Tax Credits apply to businesses that are liable for Corporation Tax. They can help to reduce a corporation tax bill or can be claimed as a cash sum paid back to a company by HM Revenue & Customs, due to an overpayment of tax.

What can I claim for?

 Types of qualifying R&D expenditure are typically:

  • Staff costs
  • Software
  • Utility bills
  • Any subcontracted work and materials

What could it be worth?

The amount of tax relief available will depend on the amount of money being spent by the business, and the profitability of the business when the work took place

An average claim size is in excess of £42,000 and in some cases, the relief can extend to around a 30% return on the investment undertaken by a business in Research & Development!