R&D Tax Credits

In 2000 the UK government launched R&D Tax credits. Incentivising the investment into research and innovation by organisations in exchange for tax credits by HMRC on expenditure. You could be entitled to 33p on every £1 spent.

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What are R&D Tax Credits

R&D Tax credits is a corporation tax relief that may reduce your tax bill, or, in some situations you may receive a payable tax credit. R&D takes place when some element of project work within your organisaton is looking to achieve an "advance in overall knowledge or capability in a field of science or technology". There is a set criteria to meet, we discuss this further down.
Did you know, the average R&D Tax claim submitted to HMRC is £109,500

What counts as R&D?

HMRC is very specific in this. HMRC states "a company must be carrying out research and development work in the field of science and technology. This can include new processes, products, or services, making appreciable improvements to existing ones, and the duplication of existing processes, products and services in a new way." Basically, you need to be able to prove that the R&D work you are doing is aiming to lead to an advancement on the current status. For example, software development, engineering design, construction techniques, bio-energy, cleantech etc.

It's our job to help you define what aspects of your project work can be claimed for.

What costs can you claim against?

The R&D costs that can be claimed against are quite broad, and can range from direct and indirect staff costs, subcontracted R&D costs, software, consumables, prototypes and collaborative working. The main factor in establishing what costs can be claimed against is the submisson of evidence to HMRC supporting the claim.

Understanding what can be claimed against, and extracting supporting evidence is where we excel.

Claims can be submitted back to 2 full financial years

Show me the money

Use our calculator below to show you how much you could receive through R&D tax credits.

What is the financial position of your company?

  • Profit-making
  • Loss-making

What is your estimated spend on R&D per year?

  • £ 50,000 50K
  • £ 250,000 250K
  • £ 500,000 500K
  • £ 1,000,000 1M

We estimate you could receive up to

£13,000

as a tax refund or reduced tax liability

Click here to show how this example is calculated

To reward businesses for their investment, the government allows you to enhance your qualifying expenditure.

50,000x130% (enhancement rate)=65,000

x20% (corporation tax rate)=£13,000

£13,000 / £50,000 = 26%

We estimate you could receive up to

£65,000

as a tax refund or reduced tax liability

Click here to show how this example is calculated

To reward businesses for their investment, the government allows you to enhance your qualifying expenditure.

250,000x130% (enhancement rate)=325,000

x20% (corporation tax rate)=£65,000

£65,000 / £250,000 = 26%

We estimate you could receive up to

£130,000

as a tax refund or reduced tax liability

Click here to show how this example is calculated

To reward businesses for their investment, the government allows you to enhance your qualifying expenditure.

500,000x130% (enhancement rate)=650,000

x20% (corporation tax rate)=£130,000

£130,000 / £500,000 = 26%

We estimate you could receive up to

£260,000

as a tax refund or reduced tax liability

Click here to show how this example is calculated

To reward businesses for their investment, the government allows you to enhance your qualifying expenditure.

1,000,000x130% (enhancement rate)=1,130,000

x20% (corporation tax rate)=£260,000

£260,000 / £1,000,000 = 26%

We estimate you could receive up to

£16,675

as a tax credit

Click here to show how this example is calculated

To reward businesses for their investment, the government allows you to enhance your qualifying expenditure.

50,000x130% (enhancement rate) =65,000

£50,000 + £65,000 (enhancement) =£115,000 (enhanced expenditure)

x14,5% (surrender rate)=£16,675

£16,675 / £50,000 = 33,3%

We estimate you could receive up to

£83,375

as a tax credit

Click here to show how this example is calculated

To reward businesses for their investment, the government allows you to enhance your qualifying expenditure.

250,000x130% (enhancement rate)=325,000

£250,000 + £325,000 (enhancement) =£575,000 (enhanced expenditure)

x14,5% (surrender rate)=£83,375

£83,375 / £250,000 = 33.35%

We estimate you could receive up to

£166,750

as a tax credit

Click here to show how this example is calculated

To reward businesses for their investment, the government allows you to enhance your qualifying expenditure.

500,000x130% (enhancement rate)=650,000

£500,000 + £650,000 (enhancement) =£1,150,000 (enhanced expenditure)

x14,5% (surrender rate)=£166,750

£166,750 / £500,000 = 33.35%

We estimate you could receive up to

£333,500

as a tax credit

Click here to show how this example is calculated

To reward businesses for their investment, the government allows you to enhance your qualifying expenditure.

1,000,000x130% (enhancement rate)=1,130,000

£1,000,000 + £1,300,000 (enhancement) £2,300,000 (enhanced expenditure)

x14,5% (surrender rate)=£333,500

£333,500 / £1,000,000 = 33.35%

FREQUENTLY ASKED QUESTIONS

FREQUENTLY ASKED QUESTIONS

Use our calculator below to show you how much you could receive through R&D tax credits.

Full Service:

We provide an end to end service from discovery to cash* (assuming you're able to make a successful claim)


simple:

Our simple 4-step process starts with a discovery meeting with you and your team.


Contingent:

Our service fee is contingent, which in plain english means: if you don't make a successful claim, there is no fee.

Inside Track:

For our clients we understand your business and know your numbers so we are best placed to spot potential and maximise your claim.


Integrated:

For our clients we can integrate this process into your financial year end process so you have a seamless service.

Value Add:

We can advise on potential upcoming projects or developments you might have and wether they might qualify, we can also advise on tracking relevant costs.


Get in touch

Do you have a mindset for growth?

Get in touch with the Next Level Business team. We have offices in Berkhamsted, Hertfordshire and London, or we can visit you at your premises. Click here to visit our contact page or take the first step by filling out the form down below.

talk to us about r&d Tax credits

Could you be due a tax rebate from HMRC?

Speak to one of our tax advisors to see what your tax benefit potential could be.

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Paul Layte, FCA

Chartered Accountant (ICAEW - FCA), Founder and Virtual FD

Get in touch with the Next Level Business team. We have offices in Berkhamsted, Hertfordshire and London, or we can visit you at your premises. Click here to visit our contact page or take the first step with a free financial health check by filling out the form down below.



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