R&D Tax Credit and Research and Development Tax Relief
Research and Development (R&D) Tax Relief helps innovative businesses undertaking R&D related activity claim a generous tax deduction or a cash refund from HMRC.
Jeffreys Henry LLP is one of the UK's leading firms of Chartered Accountants and Tax Advisers with significant R&D tax experience. In recent months, we've processed over £5.5 million of R&D claims on behalf of our clients.
Thanks to fine work by @JeffreysHenry (and the UK’s innovation-friendly tax system), our walloping R&D tax credit hit the bank this morning.
— Jeff Lynn (@jeffseedrs) January 22, 2015
230% R&D Tax Relief
Profit-making SMEs can reduce their corporation tax bill by up to 230%, e.g. an additional £130 deduction on top of £100 spent of qualifying R&D expenditure.
R&D Tax Credit
Loss-making SMEs can choose to surrender their loss and receive a tax relief by way of a credit - a cash refund paid by HMRC of up to £33,000 for every £100,000 spent on qualifying R&D expenditure.
Clients normally get their money 4-6 weeks after submission. Different rates of relief apply for larger companies with a turnover in excess of €100m. Contact us for further details.
What Qualifies for R&D?
According to HMRC, a company is undertaking R&D when they are 1) overcoming technological uncertainties aimed at, 2) achieving an advance in technology and 3) which isn’t readily deducible by a competent professional.
What Qualifies for R&D in Practice?
In practice, if you are developing a bespoke trading platform or CRM system, or if you're re-designing your manufacturing process, you may be eligible!
R&D tax relief can be claimed by virtually every business in every industry that is undertaking some form of software development, innovation, scientific or technological advancement, including restaurants, breweries and creative agencies. Most tech start-up's also qualify.
Unsure if your project qualifies? email R&D Tax Specialist Parminder Chattha for free clarification.
The cost of directly employing staff who are actively engaged R&D activity.
|Externally provided workers and sub-contractors
The cost of paying a staff provider for staff provided to the company, or a sub-contractor who is directly and actively engaged in carrying out R&D activity.
Consumable or transformable materials used directly in carrying out R&D.
Revenue expenditure incurred on computer software employed directly in R&D.
Power, water and fuel used directly in carrying out R&D.
— Vitamin London (@vitaminlondon) July 6, 2016
How Jeffreys Henry's R&D Tax Team Can Help
Our dedicated R&D and corporate tax specialists have significant experience in maximising R&D claims, with a 100% success rate:-
- Help identify whether you are undertaking qualifying R&D activity
- In-depth sector knowledge, including tech, telecommunications, creative and hospitality
- Full claim analysis, preparation and submission
- Claims filed directly with HMRC’s Specialist R&D Unit
- Defending any R&D inspections
- No need to change your accountant
- Cost effective fee arrangements with no setup fee or tie-in period
- Unlike some R&D agents, we're regulated by the Institute of Chartered Accountants in England and Wales (ICAEW)
We've secured over £5.5 million of R&D claims
- Over £5.5 million of successful R&D claims processed in the last few months for businesses like yours, including:-
- £461,000 for a forensic and defence science consultancy
- £170,000 for a SaaS platform aimed at business owners
- £8,000 for a brand communications consultancy
- £40,000 for a digital creative agency
- £126,000 for an online provider of professional development services
- £924,000 for an AIM listed DNA analysis technology company
- £100,000 for a crowd funding platform
- £40,000 for a transportation company
- £234,000 for a forensic science company
- £33,000 for a TechCityUK based tech start-up
- £40,000 for a virtual queue platform
- £150,000 for a mobile advertisement distribution platform
- £450,000 for an AIM listed fuel cell manufacturer
- £64,000 for an automated home property developer
- £18,000 for a social networking tech startup
Thanks!! Your support is what's keeping momentum up at MakelightHQ - your amazing work on the R&D tax credits especially! @JeffreysHenry
— Makelight Int. (@MakelightLive) December 8, 2015
Start Your R&D Claim Today - Contact Us
For further information, or to arrange a free initial R&D assessment, please email Parminder Chattha or telephone 020 7309 2222.
Parminder is a CTA qualified Corporate Tax Specialist with significant R&D Tax experience. Since joining Jeffreys Henry LLP in 2015, he has been working closely with both SMEs and large businesses to analyse and maximise their Research and Development claims. In recent months, he has secured over £5.5 million of R&D refunds for our clients.