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How much R&D relief can I claim?

Author

Andy Wood

Andy is a practical, creative tax adviser who assists a variety of clients in achieving their personal and commercial objectives in the most tax efficient manner.

How much R&D relief can I claim?

How much R&D relief can I claim?

 

A good, and all important, question!

Qualifying SMEs can claim tax relief of up to 230% on eligible R&D spend.

This means that for every £100 spend on qualifying costs, you can deduct an additional £130 when calculating profits for corporation tax.

The amount of relief you claim will be determined by your corporation tax liability and whether you are profit or loss-making:

 

  • If the Company is making a Profit: the company can generally deduct 230% of eligible R&D expenditure from taxable profits in the relevant period;

 

  • If the company is Loss-making: the company can make a claim to surrender the 230% and receive a refund. The value of this refund is at 14.5% of the value of the claim.

 

For more articles, videos and detail on R&D then please visit the R&D section on our website

 

Next steps

 

If you have any queries about this video, or R&D in general, then please do not hesitate to get in touch.

 

Who are we?

 

ETC Tax is a specialist tax advisory firm with two specific aims:

  1. To make tax advice more accessible and more effective in meeting the needs of SMEs, OMBs, entrepreneurs and high net worth individuals;
  2. To help other professional advisers provide a full service offering to their clients, and ultimately to help them enhance and grow their practices.

Due to demand for high quality specialist tax advice ETC Tax has seen rapid growth over the past few years. Today, our tax team is made up of a group of highly experienced Chartered Tax Advisers who between us have amassed a wealth of tax experience, mostly gained at Big 4 and Top Ten accountancy firms. Supported ably by a team of passionate Tax Advisers and committed support staff we enjoy working together to achieve the best possible outcome for our clients, priding ourselves on delivering complex tax advice in a commercial and ‘user friendly’ way.

ETC Tax – ‘Making the complex simple’

 

How much R&D relief can I claim was last updated on 24 April 2020.

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