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Updated on : 04-Dec-2024 01:05 PM GMT | 4 min read
R&D Tax Credits Explained
R&D Tax Credits are the credits offered by HMRC to those businesses that are doing innovation work in the field of science & technology. You will qualify for some cash back in case you are carrying out your own research & development project. Some companies are even able to claim 230% of research & development cost against the taxable profit. Tax relief depends upon the size of the business. Small medium enterprises can claim 130% of the tax relief whereas 30% of tax relief is offered to the large companies.
Research & development tax relief is free money that helps science & technology industry to grow & make progress. If you are making advancement in systems, processes, services or products, you never know you may be eligible for the tax relief. In case your company is eligible, you are not losing anything and you could get tax relief of more than double of what you have actually spent on your project. Sometimes, you can still claim some tax relief from HMRC even after receiving your grant for research & development.
HMRC’s R&D Relief Table
| Relief | From April 1, 2015 |
| Enhanced deduction rate | 230% |
| Payable credit | 14.5% |
| Above the line credit (Large companies) | 11% |
What we offer?
How Finacbooks help in Claiming R&D Tax Credits?
Finacbooks is a leading UK portal providing accounting, finance & taxation services to freelancers, contractors, consultants and small businesses. We are having more than 10 years of experience helping small businesses in claiming R&D tax credits. We will guide you through the entire process of claiming R&D tax credits. To avail the best deals on claiming R&D tax credits, kindly call us at 03300886645 or you can also e-mail us at business@finacbooks.com.
Research and Development FAQs
The tax benefits of an R&D tax claim are as follows –
