Research and Development (R&D) Tax Incentives

A simple equation: research and development + claim = cash from HMRC.

By making a research and development (R&D) claim, an innovative company can either reduce its tax bill or make a claim to receive cash from HMRC.
We achieve for our clients an average tax benefit of twice the national average (per HMRC statistics).

hunt-caroline partnerCaroline Hunt

Tax Director

As corporate tax rates are expected to fall from 19% to 17% in 2020, we would like to see the value of research and development (R&D) tax benefits protected by increasing the small and medium-enterprise (SMEs) tax uplift, to compensate for the reductions in headlines rates. Under the current legislation, the EU have set limits to the R&D tax incentives available to UK SMEs, especially where companies receive grant funding. Following Brexit, is there scope for the EU limits to be removed and the SME R&D scheme made more generous?

5 reasons why businesses should make R&D claims

  • For a profitable company: to reduce its corporation tax bill
  • For a loss-making company: to claim cash from HMRC
  • To improve the company’s cash flow
  • To make the company’s balance sheet look healthier
  • To increase the company’s reserves

see our infographic

What is innovation?

Innovative business are not just:
  • Technology companies
  • Research focused companies e.g. pharma and biotechnical companies
  • Manufacturers
but also companies that:
  • Develop improved business data management systems
  • Develop software
  • Manufacture food and beverages
  • Develop renewable and environmental alternatives
  • Develop audio-visual and sensor-related technologies

What we do

Not just:
  • help you to identify R&D projects
  • prepare your R&D claims
  • deal with HMRC queries
But also:
  • review and replace your previously understated claims
  • help with setting up internal procedures to capture R&D data
  • help maximise the benefit from R&D tax losses

Research and development indicators

You develop new:
  • products, devices and components
  • manufacturing processes
  • software
You significantly improve existing:
  • products, devices and components
  • manufacturing processes
  • software
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