CALL US FOR FREE ADVICE

RESEARCH AND DEVELOPMENT RELIEF​

RESEARCH AND DEVELOPMENT RELIEF​

This form of tax relief enables companies to deduct a further 130% of qualifying costs from yearly profits together with the standard 100% deduction and to claim tax credits if the company makes a loss. Companies that are making a R&D Relief claim for the first time may be granted Advance Assurance.

WHAT COSTS CAN BE CLAIMED

There are certain costs which can be claimed on a project from its date of commencement including:

  • Staffing costs – it’s possible to claim a proportion of staff wages, salaries and class 1 National insurance contributions for anyone working directly on the project.
  • Subcontractor costs – up to 65% of the costs of using a sub contractor for the R&D activities
  • Consumables including utilities and materials

It is not possible to claim for the distribution or production of services and goods, the cost of land, the cost of trademarks and patents, rates or rent or capital expenditure.

Advice For Research And Development Relief ​

It is possible to make a claim for R&D tax relief for 2 years after the accounting period’s end. The relief can be claimed by entering the enhanced expenditure into the CT600 company tax return form. Calculations are are worked out by working out the costs which were directly attributed to R&D then reducing external subcontractor and staff provider payments to 65% of the cost. Add the costs together then multiply by 130% and then add this to the R&D original expenditure figure. This gives you the enhanced figure to enter into the tax return. Needless to say, this is a complex and time consuming task and therefore using the services of a skilled accountancy firm like The Accountancy Solution is the best option for ensuring that all appropriate tax relief is claimed.

GET IN TOUCH WITH US
FREE AND NO OBLIGATION ADVICE

    WhatsApp chat