Introduced in 2000 and pledged to run until 2032, the Research and Development (R&D) Tax Credit scheme is part of an EU-supported initiative to promote innovation across the UK and Europe. R&D tax credits enable companies that incur costs in developing new products, processes or services to receive a cash payment or tax deduction.
A basic definition of R&D is the “work to resolve scientific or technological uncertainty aimed at achieving an advance in science or technology”. This can include new or developed products, services or processes.
How much could your business claim?
The maximum that can be claimed is €7.5m for any one projects. The claim must be made within two years of the end of the accounting period in which the R&D expenditure was incurred.
What can you claim?
- Cost of employing staff
- Sub-contractor costs
- Consumable and transformable resources used directly in R&D work
- Power, software, fuel and water
Not sure you have a claim
It’s always worth asking your professional advisor about an R&D assessment to be sure you don’t have a claim, most of the time it’s free!
If a claim is identified you can then instruct someone to carry out the claim, KJG works to fixed fee claims, or a percentage of the overall claim, and we don’t tie you in to using us for future claims, unlike a lot of companies.