R&D claim services

The Research and Development (R&D) tax credit scheme was introduced in the UK in 2000 to encourage UK companies to invest in R&D projects. Since then, HMRC have repaid millions of pounds to qualifying companies in research and development tax relief.

 

What are the criteria for making a Research and Development credit claim?

 

To qualify for the R&D tax credit scheme, businesses must meet the following criteria:-
• Must be a limited company trading in the UK and subject to corporation tax
• Must have carried out research and development in the field of science or technology
• Must have incurred expenditure on a relevant project to achieve their R&D goals

Prior to April 2024 there were two schemes that eligible companies could claim under, the SME scheme for small and medium-sized enterprises and the Research and Development Expenditure Credit (RDEC) scheme for large companies or small companies that had received grant funding for their project.

From April 2024 companies making a claim from Research and Development expenditure can only claim under the Research and Development Expenditure Credit (RDEC) scheme which is less generous that the previous SME scheme for small companies.

Companies considering making a claim must be able to demonstrate to HMRC that –

• They are seeking an advancement in science or technology. Remember that a project does not need to be successful in order to make a claim
• The activities that are undertaken aim to achieve an advance by resolving science or technological uncertainties

What can I claim for in a R&D claim?

Only certain qualifying expenditure can be claimed for. This includes:-

• Staff salaries for those involved in the R&D project. This may be directly or indirectly. This includes the employers’ NIC and employers’ pension contributions
• Subcontractor costs
• Consumables consumed within the relevant project

If you would like to know more about our R&D services and whether your company can benefit, please click below to download our factsheet:

We have also produced a step-by-step guide to help applicants complete the R&D Additional Information Form.

Our team of taxation specialists has considerable experience supporting business owners in making successful R&D claims. We can advise on every step in the process, including help with the R&D claim application. To arrange a free consultation to discuss your company’s potential to benefit from the scheme, contact Partner Mark Mitchell on 01383 628800 or email on mmitchell@thomsoncooper.com

Who to talk to

Mark Mitchell

Partner

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