Research & Development (R&D)

 

R&D tax relief is available to companies that are developing a product through an advance in science or technology by overcoming scientific or technological uncertainty.

 

For small to medium sized companies, the relief takes two forms:

Firstly, enhanced R&D expenditure – for every £1 of qualifying costs spent on R&D, the company receives a deduction in calculating their taxable profit for corporation tax purposes of £1.75. Qualifying for relief, includes costs incurred on:  

 

• Staff involved in R&D

 

• Materials, heat, light, power

 

• Subcontracted R&D

 

• Software

 

• Clinical trial volunteers

Secondly, for loss making companies up to 24.5% of the qualifying cost can be available as a tax refund if the company has paid sufficient PAYE.

 

Claims for R&D tax credits involve a lengthy and complex process of identifying the qualifying R&D being undertaken and analysing the qualifying costs.

 

Eaves and Co has a demonstrable track record in completing successful R&D claims and can offer assistance in all aspects of the claim process; from an initial review of the company’s activities to detailed ledger analysis and submission/follow up of claims with HM Revenue and Customs.