R&D Credits / Patents

research and development tax creditsThis is a specialist tax area covering development activity in the UK. Research and development in this case covers a wider range of activity than you might think – software/websites can be included as well as specific product development and more traditional research.

Relevant Costs that can be claimed include staff and sub contractor costs on relevant projects, materials, utilties, software, payments to volunteers and some capital allowances too.

Rate of tax relief or credit

The tax relief on allowable R&D costs incurred on or after 1 April 2012 is 130% – that is, for each £100 of qualifying costs, your company or organisation could have its Corporation Tax profits reduced by an additional £130 on top of the £100 spent.

If instead there is an allowable trading loss for the period, this can be increased by 130% of the qualifying R&D costs – so that’s £130 for each £100 spent. This loss can be carried forward in the normal way, but only if you choose not to convert it to tax credits

Who is this for?

Organisations undertaking research and development activity with expenditure relating to their trade – either an existing one, or one that you intend to start up based on the results of the R&D.

Indicative Fees

Fees would be a % of tax relief obtained. Taxless would work with one of our trusted partners who is a specialist in this area to maximize your claim.