What is HMRC R&D Tax Credits?

HMRC R&D tax credits is an up-and-coming company concerned with tax relief which is used to reduce a company’s tax bill, or for many small and medium sized companies, provide a very important cash sum. The aim of tax credits is quite simply to provoke greater Research & Development expenditure to give and promote higher sums of investment in innovation.

At the start of 2006 about 22,000 different claims had been made, with roughly 19,000 of these being made under the Small to Medium Enterprise (SME) scheme, and just under 3,000 of these were made under the large business scheme, resulting in support amounting to £1.8 billion of claims through these schemes.

HMRC R&D tax credits operates by allowing companies to deduct up to 175% of qualifying spending on Research & Development activities when calculating their profit for tax related reasons. SME companies, in certain instances, submit a tax relief form to claim payable tax credits in a large cash sum from HM Revenue & Customs (HMRC).

Can I benefit from HMRC R&D tax credits?

All companies that spend over £10,000 a year for the research and development (R&D) projects are entitled to deductions when they work out their taxable profits of 150% for qualifying expenditure for SMEs (increasing to 175% in expenditure incurred on or after 1st August 2008) or 125% of all qualifying expenditure for larger companies up until 31st March 2008 and 130% in respect of the expenditure incurred on or after 1st April 2008.

RandD UK Ltd
Unit 119,
Coney Green Business Centre,
Clay Cross,
Chesterfield,
Derbyshire,
S45 9JW

07836 683165