Research and Development (R&D) Tax Relief can help classic and vintage car restoration companies claim a generous tax deduction or a cash refund from HMRC.
R&D tax relief is a tax incentive from the UK Government designed to encourage innovation and global competitiveness. The scheme has been around since 2000 and last year over 25,000 UK companies claimed almost £2.9bn in 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. 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.