R&D
Tax Relief
What
is R&D tax
relief?
The
UK has a well-established government scheme for rewarding
companies involved in research and development activities, delivered
through the taxation system. ela8
was
founded with the idea of delivering “Big 4” quality expertise in
R&D
tax relief at an affordable cost. We
deliver a quick, efficient and seamless service though a small team of
highly
experienced professionals. Our clients
range from large international corporate organisations to small
start-ups and
spin out companies.
What
benefit is available to UK companies?
A small
or medium sized company (SME) may be able to exchange trading losses
for cash (the "tax credit") - worth up to 24.5%
of the
qualifying
R&D expenditure
Tax
paying SMEs may be able to generate a repayment of corporation tax for
prior years or reduce future tax liability - worth up to 21%
of the
qualifying R&D expenditure (8.4%
for large companies)
All
companies may be able to claim a 100%
tax deduction for capital
expenditure relating to eligible R&D
Claims
can be made within two
years of the end of an accounting period, so a
number of years may be available
What
kind of businesses are eligible?
Many companies assume they are not
eligible, seeing their activities as not R&D but “just”
engineering,
product development, or manufacturing.The term R&D tends to
conjure up academic
or blue-sky
concepts, but eligible work
can extend into many practical fields such
as
manufacturing, engineering and software development.
Experience has shown that any company who has a technology
basis for their business may have a claim. Sometimes you may be able to
claim even if being paid to carry out the work.