R&D Tax Credits – How does the scheme work?
When your business carries out research and development, you can claim back up to 33p for every £1 spent on qualifying activities. This can be offset against your Corporation Tax and, in some cases, you can receive this as a cash credit from HMRC.
R&D can take place in any sector
- Manufacturing & Material Sciences
- IT & Software
- Automotive & Motorsport
How to qualify for the R&D Tax Credit scheme
To benefit from the scheme, you need to:
- Spend money on developing new products or services; or enhancing existing ones
- Employ staff across a variety of roles who work on projects that advance knowledge, and clarify uncertainty
- Be a limited company, in the UK, that is subject to Corporation Tax
- Have conducted qualifying activity within the last 2 accounting periods
If these criteria apply to your business, you may be eligible for the scheme. Get in touch to find out how much you could stand to gain.