R&D Tax Credits

What Are They?

Research and Development tax credits are a Government tax incentive designed to encourage UK companies to invest in R&D.

This is additional tax relief which aims to encourage and support innovative projects in science and technology.

A claim may be made by a company that seeks to research or develop an advance in their field, even if the project is aborted or unsuccessful.

There are different types of relief depending on the size of the company. Different schemes apply for small and medium sized enterprises (SMEs) and large companies.

A separate Patent Box relief is available to a company on the profit made from the use of a patented invention.

R&D Tax Credits

Why Use QA?

QA works closely with the company owners and their accountants to ensure that the maximum benefit available is received in accordance with the legislation.

QA are specialists in the field of R&D tax credits, dealing with HMRC and the clients’ advisors.

The team includes members of the Institute of Chartered Accountants in England and Wales and the Chartered Institute of Taxation

Examples of R&D Qualifying Activities include:

  • Application of Artificial Intelligence to traditional methods
  • Development of software systems
  • Monitoring technology in the healthcare sector
  • Enhanced manufacturing processes
  • Improved materials e.g. construction, textiles
  • Innovative processes e.g. cooking, distilling

There is no limit to the fields open to explore. Successful and failed ventures are eligible.

What Is The Benefit Of An R&D Claim?

Cash back - a loss-making company will receive a payment from HMRC.

Reduced corporation tax - the R&D credit will reduce the taxable profit upon which corporation tax is payable.

How Do We Charge?

There is no fee for our team’s work if our specialists decide that a claim is not viable.

You do not pay anything until the successful claim is processed by HMRC.