RDEC R&D Tax credit helps innovative businesses undertaking R&D related activity claim a generous corporation tax deduction. It is aimed at large companies, but SMEs may be able to claim in certain circumstances.

 

R&D tax relief is a tax incentive from the UK Government designed to encourage companies to invest in R&D.
The scheme has been around since 2000 and last year over 9,000 UK companies claimed £3.4bn in RDEC tax relief. See here for more R&D tax credit statistics.
Since 2011, Jeffreys Henry’s specialist R&D tax team have provided an end-to-end service to existing clients, new businesses and our network of professional introducers.

 

Looking for information on SME R&D?

R&D Tax Relief

£102,000

Average client claim

What would you do with an extra £102,000?

£1.1 million

Single Largest R&D Claim

Over £100 million

Total R&D claimed by our
R&D tax specialists in recent years

FREE RDEC ASSESSMENT

WHO CAN CLAIM RDEC?

Research and Development Expenditure Credit (RDEC) is typically claimed by large companies. Other factors such as having received grant funding and carrying out R&D work for a large company can restrict access to the SME scheme.

RDEC is available if you are a large company for R&D purposes with:

  • more than 500 staff
  • a turnover of more than €100m or a balance sheet total more than €86m

R&D FOR SMEs vs RDEC

The main difference between R&D for SMEs and the Large company scheme (RDEC) is the costs which qualify under the RDEC scheme. Subcontracted expenditure cannot be claimed unless it has been directly undertaken by a scientific research organisation i.e. a charity, university, or an individual.

SMEs with a turnover less than €100m, may be eligible to claim SME Research and Development Expenditure Credit.

WHAT DOES THE RDEC SCHEME COVER?

For large companies and SME’s who fall under the RDEC scheme you will be able to claim a tax credit for 12% of your qualifying R&D expenditure from 1st January 2018 and 13% from 1st April 2020.

HOW THE NUMBERS WORK

An RDEC claim is a taxable ‘above-the-line’ credit of 13% of the qualifying expenditure identified. This is subject to corporation tax at 19%, and is calculated as a deduction from your tax bill. If there is no tax payable, the net amount can be claimed as a cash credit.

A company has identified £100,000 of qualifying expenditure incurred on its R&D project.

The net RDEC amount claimable as a credit is calculated as follows.

Above the line credit: £100,000 x 13% = £13,000

Net RDEC amount claimable: £13,000 – (£13,000 x 19%) = £10,530

After tax benefit: £10,530 / £100,000 = 10.53%

HOW TO CLAIM RDEC TAX RELIEF

Jeffreys Henry’s R&D tax specialists provide an end-to-end service that makes claiming RDEC tax credits easy for you.

1

FREE RDEC ASSESSMENT

We talk to your finance and tech team to hunt down every qualifying RDEC activity.
Call Now: 0207 309 2222
2

RDEC CLAIM PREPARATION

Our dedicated RDEC account manager will work with you to document each RDEC activity and split out the qualifying costs.
3

SUBMISSIONS TO HMRC

Once finalised, we’ll submit your claim to HMRC’s specialist RDEC unit.
Established for over 120 years, Jeffreys Henry is an ICAEW registered accountancy firm, with a specialist R&D tax team, giving you peace of mind of a robust R&D claim.

 

INTRODUCTORY MEETING

CONTACT US TO ARRANGE AN INTRODUCTORY MEETING, OR FOR A QUOTE.

PARMINDER CHATTHA

Partner - Corporate and R&D Tax


Parminder specialises in Research & Development Tax Credits, leading the R&D department at Jeffreys Henry. Since joining the Firm in 2015, he has been working closely with both SMEs and large businesses to analyse and maximise their Research and Development claims. He has so far secured over £100 million in R&D tax relief and credits for our clients.

KATE GREENHOUGH

R&D Director


Kate is a CTA qualified tax specialist with significant R&D tax experience. Kate has over 10 years of specialist experience in advising start-ups to PLC analyses, preparing and submitting robust R&D tax relief claims and Patent Box claims in line with the latest HMRC guidance. Her sector experience spans FMCG (fast-moving consumer goods), automotive, financial services, healthcare, manufacturing, construction, and food and drink.

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