Research and Development

At UHY Hacker Young, 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 – £11 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 are thinking of making a claim, please contact a member of the team.

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