Your Guide to R&D Tax Credits
Our comprehensive guide provides a simple, insightful explanation into what R&D Tax Credits are, how to make an R&D claim and most importantly, how can R&D Tax Credits benefit your business.
Click on the headings below to jump straight to the relevant section.
What are R&D Tax Credits?
In 2000, the UK Government set up the Research and Development Tax Credit Scheme to help boost innovation in the UK economy. The Government reward companies that invest in researching or developing a new product, process or services, allowing UK companies to reclaim up to 33% of the money spent .
To put it simply, if you've spent £100,000 developing a new product or service during a single financial period, Claim Capital can help you claim back up to £33,000 from HMRC.
An R&D Tax Credit is the tax relief you receive from HMRC. The great news is that it applies to companies across all sectors, even if you’re loss-making.
Company spends capital developing
a new product, process or service.
Company receives tax relief from HMRC and reinvests in back into the company
Claim Capital produce and submit your R&D Tax Claim
HMRC process and approve
the R&D Tax Claim
Am I eligible to claim R&D Tax Credits?
To qualify for R&D Tax Credits your company needs to meet these 3 criteria:
Staggeringly, 90% of companies which are eligible to claim, currently don’t. Which demonstrates just how few companies are taking advantage of the UK Government incentive.
If you're unsure your business is eligible and would like to double check, we recommend arranging a free consultation with one of our R&D Tax Specialists or visit our Eligibility Sectors page for some further clarity.
UK Limited or PLC company
Carried out research and /or development
on new product, process or service
Have spent money in order to achieve that.
£10k - £1.2m
Claim sizes successfully achieved
Avg. cost saved
How much can I reclaim?
The amount of tax relief your company receives will depend on two factors:
Company's Financial Position
Loss-making companies will receive up to 33% of their eligible R&D costs in the form of a cash rebate, i.e. cash in the bank.
Profitable companies will receive up to 25% of their eligible R&D costs in the form of a tax rebate (if tax has already been paid) or it will offset against future tax liabilities.
Type of R&D Tax Credit Scheme
If your company has less than 500 employees, less than 100m in turnover or a balance sheet total less than 86m, your company will most likely claim under the SME Scheme.
If your company exceeds any of these metrics, your company will most likely claim under the RDEC Scheme. It's also worth noting, for companies that receive grants, such as Innovate UK, can in fact still claim R&D Tax Credits, however, they will too claim under the RDEC Scheme.
What's the process?
As a market-leading R&D tax specialist we have refined our process to ensure small startups to established SME’s receive a simple and efficient service.
From the outset, you'll have a dedicated R&D tax specialist who will complete you claims in a timely manner, as well as be on hand year round to answer any R&D queries you may have.
There are two sections which make up the R&D Tax Report:
- Outlines the eligible cost involved within each of the R&D projects
undertaken. Please see the next section for more information regarding the eligible costs.
- Provides HMRC with the technical evidence of your R&D projects
- Clearly explaining the technological or scientific advance and how the business overcame the challenges faced during each claim period.
Our 5 Step Process
Arrange a free eligibility call with our R&D Tax Specialist
Collect Financial and Technical Data required for R&D Report
Complete your R&D Tax Claim within 3-5 working days
Amend Corporate Tax Return and submit report to HMRC
HMRC processes and approves client's R&D Tax Relief
Which R&D costs are eligible to reclaim?
The Financial Report within an R&D Tax Claim will outline the amount of eligible cost spent on the R&D projects you have undertaken, and ultimately, indicate to HMRC how much tax relief you are eligible to receive.
With each claim, Claim Capital will inspect every financial cost associated with your R&D projects to ensure we maximise the amount of tax relief you receive from HMRC.
Staff costs under PAYE can be claimed along with NI and Pension contributions
Costs on consultants and contractors anywhere in the world are eligible
Any other cost crucial to the R&D can also be included such as software licences.
As an R&D Tax Specialist, we typically find that we are able to find up to 3x more eligible costs than a typical accounting practice. Speak with our R&D Tax Specialists today to see how much you could receive on 020 7458 4831.
Why companies trust Claim Capital?
Claim Capital was founded on the belief that current R&D providers were overcharging and taking far too long to complete the claims.
We’re changing the R&D landscape to ensure our clients receive an efficient, cost‐effective and flexible service to meet their business needs.
Traditional R&D Advisors
Little transparency on pricing
Charge between 15-30% of claim size
Long completion and submission times
Claim they need to charge a % to maximise your claim
Lock clients in to long-term contracts
£3,000 Fixed Fee, no matter the claim size
Payable only upon success
Submitted within 3-5 working days
No lock-in contract so it's always in our interest to maximise your claim
Advanced R&D Funding available to companies that have achieved 2+ years of claims