FAQ

No, you have to meet certain requirements:

• Your company is registered for corporation tax in the UK;
• You have fewer than 500 employees;
• You are investing in tackling scientific or technological uncertainties within your field.

Yes, even unsuccessful projects can get a relief on their corporation tax.

Any project, if you can explain:

• How it looked for an advance in science and technology;
• The uncertainty you had to overcome;
• How the project tried to do so;
• Why it could not be easily worked out by a professional in the field.

It should develop a new process, product or service or improve an existing one.

Your project should aim to create a solution to a problem that involves the whole field in which your company operates, not just your business.

In order to be allowed to claim tax credits, you have to prove that your project tackled a scientific or technological uncertainty. This means that no expert could say if something is technically feasible or not, even after having a sufficient amount of evidence.

Our advice is to keep a record of every failed attempt and have the professionals involved explain what solution they tried to overcome the uncertainty and why it failed.

There is an SME R&D relief scheme that allows companies to:

• Deduct 130% of their qualifying costs from their yearly profit, which can be combined with the standard 100% deduction, for a 230% total deduction;
• Claim a 14.5% (calculated on the surrenderable loss) tax credit if the company is loss making.

Large companies and their subcontractors can claim a Research and Development Expenditure Credit, which is a 13% tax credit calculated on your qualifying R&D expenditure.

It depends on your situation. Usually, profitable companies get a reduction on their corporation tax bill.

Usually, all successful claims take 4-6 weeks, unless HMRC needs more further information to decide. In case it happens, we will deal with them on your behalf.