At UHY Hacker Young in Manchester, we specialise in helping our clients make R&D claims. Our approach is to educate both the client and the revenue as to what the R&D activity is and why we believe it fits business guidelines.
What is R&D?
R&D has a specific definition for tax purposes. If a company is seeking to make a product or process better than the original (in a scientific or technological way), then as long as the project wasn’t straightforward, it is likely that R&D has taken place.
What is R&D tax relief?
R&D tax relief allows companies to claim a ‘super’ tax deduction where they are undertaking R&D activities. If a company is loss making, it can also claim a tax repayment from HMRC.
How much is the relief worth?
There are several different R&D reliefs available, but the tax savings are generally:
- for SMEs – £25 for every £100 spent on R&D; and
- for large companies – £9 for every £100 spent on R&D.
For loss-making SMEs, a tax repayment of £33 for every £100 spent on R&D could also be due.
HMRC are inundated with R&D claims, and at UHY we take the time to develop claims that meet their expectations. So far, we have been responsible for a significant number of successful claims.
The next step
R&D applies across all industries in the UK from software and manufacturing to design and process management. If you would like more information about research and development tax relief and the services that we offer, please download our publication here. If you are thinking of making a claim, please contact a member of the team.