Understanding R&D Tax Credits
When a company invests in developing a technology idea and spends £10,000 on research and development and goes on to make a loss for the year, the company can claim up to £2,600 back from HMRC through the R&D tax credits regime. If the company is profit making then £1,620 of tax can be saved.
If the R&D technology spend is £1m, then tax can be reduced by £162,000 for a profitable business and a tax refund of £268,700 is possible for a loss-making company.
You may be able to claim R&D tax credits if your technology project meets the definition of R&D for tax purposes. To qualify for relief, your work must be part of a specific project to make an advance in technology. Eligible businesses can claim up to an extra 86% of their qualifying costs, as well as the 100% deduction which already appears in the accounts, and a tax-free credit worth up to 14.5%.
Maximising Your R&D Tax Relief
If you are eligible, we will work with you to identify and quantify R&D tax credit expenditure to maximise the R&D tax relief available to you. We will model the possible outcomes before submitting a claim so that you can assess whether it is worthwhile for you. We will do the modelling at no additional cost to you where we are preparing your Corporation Tax return.
Why Choose Our R&D Tax Credits Service
Years of experience
We have years of experience in making R&D tax credit claims for technology businesses. We understand the types of technology expenditure that qualify for R&D tax relief and what activities in your business are likely to qualify.
Complex compliance requirements
You may need to submit an advance notification to HMRC before making a claim and you must submit additional information to HMRC to verify your claim. Tech Relief will support you through the entire process to ensure that your R&D tax credit claim is successful.
Claiming for eligible costs
Not all expenditure qualifies for R&D tax credits, so we will undertake the detailed calculations required to make an accurate and successful claim.
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Tech Relief
128 City Road, London EC1V 2NX
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TR Tax Advisers Limited, trading as Tech Relief, are registered as a limited company in England and Wales under company number 15693007. Registered office address 128 City Road, London, EC1V 2NX. Trading address 197 St. John's Road, Walthamstow, London, E17 4JL.
We are Members of the Institute of Chartered Accountants in England and Wales.
