Research and Development (R&D) and Patent Box tax relief are generous incentives aimed at promoting innovation and economic growth. These incentives provide companies with opportunities to reduce corporation tax liabilioties or secure potentially significant cash repayments as a result of engaging in innovative research and development activities. Click here to read our factsheet.
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Benefitting from Innovation
We have an exceptional track record in helping companies reduce their tax bill through R&D tax relief or, if they are not currently taxpayers, getting substantial cash pay-outs to fund their qualifying research and development activities.
How does it work? Companies that spend money developing new products, processes or services; or enhancing existing ones, may be eligible for R&D tax relief. If you’re spending money on your innovation, you could make an R&D tax credit claim to receive either a cash payment and/or corporation tax reduction. The company must complete an “Additional Information Form” (AIF) on a dedicated HMRC portal and then subsequently include the R&D tax relief claim on its corporation tax return.
What You Need to Know
Research and Development (R&D) tax relief is a valuable incentive for businesses that invest in innovation and technology. It can reduce your corporation tax bill or provide you with a cash payment if you are loss-making.
However, the rules and rates of the scheme are complex and you need to be prepared for the impact on your R&D tax relief claims.
It is, therefore, more important than ever that companies gather all the evidence to submit robust and defendable R&D tax relief claims, to reduce the risk of HMRC rejecting a claim as well as incurring potential penalties.
Read more in our brochure