• Skip to main content
  • Skip to footer

Tatton Consulting

  • 🏆 Grants Consultancy of the Year 2020 & 2021 🏆
  • About us
  • Submit your Enquiry
  • Contact Us
  • How We Help
  • Our Team
  • Our Successes
  • Funding Opportunities
  • Eligibility
    • Innovate UK opportunities
    • COVID-19 grants
    • Defence & Security grants
    • Industrial Strategy Challenge Fund
    • Regional Investment grants
    • EU funding opportunities
  • Pricing
R&D tax credits

R&D tax credits

March 25, 2017 By Mark Clayton

If you are a UK SME and undertake any form of research and development then you could reduce your corporation tax bill by 130% of your R&D spend.

If you are loss making this can be carried forwarded or claimed as cashback. Claims can be made for two years previous and the average size claimed back is £43,000

The R&D tax credit scheme is still one of the most under utilised SME funding schemes in the UK due despite the quick application process and significant sums on offer.

What qualifies as R&D?

R&D doesn’t have to involve white coats or take place in a lab, it can be as simple as re-configuring a machine to work for your business or developing an innovative new business process. In the last two years;

  • Have you made any bespoke or customised products?
  • Have you made any efficiency improvements to your processes?
  • Have you carried out any in-house design work or prototyping?
  • Have you developed any new products or launched something new to market?
  • Are you regularly problem solving to meet your customer’s needs?

If you can answer yes to any of these questions then you could have a substantial claim.

Which costs qualify for R&D Relief?

To qualify as R&D, the activity must contribute directly to seeking the advance in science or technology or must be a qualifying indirect activity. Eligible costs include;

  • Employee costs – that is, employing staff directly who are actively engaged in carrying out R&D
  • Staff providers – paying a staff provider for staff provided to the company who are directly and actively engaged in carrying out R&D.
  • Materials – consumable or transformable materials used directly in carrying out R&D.
  • Utilities – power, water, fuel used directly in carrying out R&D, but not things like telecommunication costs and data costs.
  • Software
  • Subcontracted R&D expenditure – can be claimed at a third of the rate of the subcontractor cost.

Making a claim

The scheme is open year round and the application process can be completed in 3 weeks, with claims approved within 8 weeks. Claims can also be made retrospectively, on R&D spend from two years previously.

The average claim size is £43,000 and there has never been a better time to claim, with the UK government actively trying to stimulate further R&D investment.

To begin a claim or arrange a review of an existing claim then please get in touch via our website or email me. I look forward to hearing from you.

Filed Under: Blog

Footer

Get in touch

Get in touch now and one of our experts will contact you to discuss your project further;

Submit an enquiry
Email: funding@tattonconsulting.co.uk
Tweet: @UKgrantfunding

Company Number: 09073093
VAT Number: GB 213 0344 66

 

  • Email
  • LinkedIn
  • Twitter

Come meet us

Tatton Consulting Ltd
The Innovation Centre,
Sci-Tech Daresbury,
Keckwick Lane,
Daresbury
WA4 4FS

Find us


UK Grant Funding Partners

Copyright © 2021 · Tatton Consulting · site by Maloney IT