R&D tax relief

Research and development (R&D) tax relief is often overlooked by UK companies and their advisers, but can prove highly lucrative.

Typically available to science, technology and manufacturing companies with qualifying R&D activities, R&D tax relief can result in significant corporation tax savings on eligible expenditure. Eligible loss-making companies can benefit from a cash injection via a tax credit, or a corporation tax reduction if they are profitable.

Claims can be made retrospectively for the past two accounting periods, so it’s important to find out as soon as possible if a claim can be made, and not miss any year end deadlines.

In 2018 our R&D team secured £40 million in R&D tax relief for UK companies. We have assisted businesses ranging from small start-ups through to FTSE 250 organisations operating across a variety of sectors.

For advisers, the potential scope for successful R&D tax claims a client base can be substantial. Our specialist in-house R&D division can help assess past, present and future R&D activity to maximise tax relief opportunities.

Spotting an R&D tax relief opportunity

To qualify for R&D tax relief, a company must be:

1. Making an appreciable improvement to existing technology, although this does not necessarily mean ground breaking, innovative, or novel work. If companies are aiming to make their products or process cheaper, faster, smaller, or better in some way, then this may qualify as R&D.

2. Overcoming technological uncertainties or challenges, especially if the solution will not be immediately obvious to a qualified professional. The company may need to go through a “trial and error” process to achieve the required solution.

We can carry out a review in a variety of sectors, including:

• Adhesives, sealants, chemicals and paints
• Agriculture
• Alarms and CCTV
• Automotive industry
• Aviation and marine
• Cosmetics and personal care
• Clothing, textiles and fabrics
• Energy harnessing
• Fire and safety
• Food and drink
• Foundries
• Games software industry
• Insurance brokers (softaware development)
• Manufacturing, engineering and electronics
• Pharmaceuticals and medical
• Printing and packaging
• Property and construction
• Security, lightning and electrical
• Software development, IT & telecomunnications 
• Travel agencies