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Research and Development

Research and Development (R&D) tax reliefs are a very valuable, yet sometimes overlooked, tax break.  R&D Tax Credits in particular can be a lifeline for the cash-strapped research company.  These have to be uncertainties that competent professionals working in the field cannot readily resolve and where solutions are not common knowledge.

The SME scheme allows for an enhanced 200% deduction and the possible surrender of the resulting loss for a repayable tax credit so this is particularly valuable.

If you think you are entitled to R&D tax relief, here are some questions that you could ask yourself:

  • Is it R&D?
  • Are we trying to do something that involves us having to develop scientific or technical knowledge that isn't commonly available (i.e. in the public domain)?
  • What are the scientific or technological challenges we had to overcome as part of this work?
  • Does the expenditure qualify?
  • Does the expenditure exceed the minimum £10,000?

At Acumen, we have considerable amounts of experience in preparing R&D tax relief claims. Recently HMRC have scrutinised claims much more closely so you need to ensure that your case is robust.