As tax specialists, we like to keep our clients and contacts up to date with any ways in which they can make savings on their tax bills. Many people don’t take full advantage of Research and Development (R&D) Tax Relief that is available to them.
Who can access R&D Tax Relief?
There are set criteria for the types of businesses that can access this tax relief. You have to be a small or medium-sized business (SME):
- With less them 500 employees and
- a turnover of under €100m or a balance sheet total under €86m
What is the definition of R&D projects?
It is essential to understand what is defined as an R&D project before you claim tax relief. Businesses of all sectors can make a claim, but they must be focused on an innovative project which develops a new process, product or service or improves on an existing one.
Tax relief can also be claimed for an R&D project that was carried out but was not successful.
How much tax relief is available?
The R&D tax relief for SME companies is to:
- deduct an extra 130% of their qualifying costs from their yearly profit, as well as the normal 100% deduction, to make a total 230% deduction
- claim a tax credit if the company is loss-making, worth up to 14.5% of the surrenderable loss
If you are planning an R&D project in your company, then contact us, and we can advise on how to claim tax relief. It is an excellent way of mitigating tax and allowing your company to invest more in innovation. You can call us on 01623 490 120 or email