Does your company work on innovative projects in science and/or technology? You might be eligible to claim Research and Development support. The Research and Development (R&D) reliefs support businesses that research or develop an advance in their field; in turn, you may be able claim Corporation Tax relief. There are different types of support depending on the size of your company, and if the project has been subcontracted to you or not. These reliefs have replaced what was known before as the large company scheme reliefs.
Can I claim?
Not sure if you qualify? The best way to make sure is to speak with an advisor. The scope of the relief is large, and so can seem confusing. Letting an expert do the heavy lifting is advised, but in essence, you can claim if you satisfy the key criteria.
Key criteria include:
- Being a UK limited company subject to Corporation Tax (profitable or loss-making);
- Spending money on developing new or enhancing existing products, processes, or services;
- Conducting qualifying R&D activities within the past 2 accounting years.
What can I claim for?
These expenses can include:
- Employee costs (salaries, expenses, NIC)
- Costs for subcontractors and freelancers
- Qualifying software expenses
- Materials and consumables used during the R&D project (heat, light, power)