What is R&D Tax Credits?

R&D tax credits is a brand new company that deals with tax relief that is used to reduce a company’s tax payments, which includes small and medium sized companies, and supplies them with a very important cash sum. The aim of R&D tax credits is basically to provoke more Research & Development expenditure to give and promote larger sums of investment in innovation.

The start of 2006 saw about 22,000 different claims having been made, with roughly 19,000 of these claims being made under the Small to Medium Enterprise (SME) scheme, and just under 3,000 of them being made under the large business scheme, resulting in support that ammounted to £1.8 billion of claims.

R&D tax credits works by allowing companies to deduct up to 175% of qualifying spending for Research & Development activities when calculating their profit for tax calculation. SME companies can submit a tax relief form to claim on their tax credits that is received in a lump cash sum from HM Revenue & Customs (HMRC).

Can I benefit from R&D tax credits?

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

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

07836 683165