R&D tax credits are a government incentive to reward U.K. companies for investing in science and technological innovation.
Companies that spend money developing new products, processes and services (or enhancing existing ones) can receive significant corporation tax reductions or even cash credits. Companies involved in manufacturing, science and technology are obvious candidates, but in fact R&D takes place in most industries.
CPRA’s chartered surveyors specialise in R&D claims for both SMEs and large companies. We have successfully completed R&D claims for clients involved in gaming, automotive, electronics, construction, pharmaceuticals, software, mining, oil & gas, cosmetics, food & beverage production, agriculture, waste management, engineering, app development and other sectors.
The qualifying costs generally include salaries, expenses, taxes, pensions, freelancer and subcontractor fees, materials, utilities and software. If your R&D claim is successful it will result in either a corporation tax reduction if you are profit making or a cash credit if you are loss making and sometimes a combination of the two.
From April 2015 SMEs can claim up to 230% on their qualifying R&D costs. Loss-making companies can usually surrender their losses in return for a payable tax credit of 11% of their qualifying R&D expenditure.
If your company has been undertaking qualifying R&D and has not yet claimed R&D relief, it is important to calculate your expenditure and submit a claim no later than two years after the end of the relevant accounting period.
Our R&D team is made up of chartered surveyors including some of the country’s leading experts. If your company has undertaken a project seeking to achieve an advancement in knowledge or capability in science or technology and you would like to find out how much you could claim, contact the CPRA R&D team on 020 7770 8000 or click Contact Us for some expert advice.