R&D Relief for SMEs
We have helped many small businesses to correctly file a claim. Could we help you?
If your business has engaged in a project that is looking to achieve and make advancements in science or technology, it is deemed to be carrying out Research and Development (R&D).
R&D relief in the UK currently allows £2.30 to be deducted against taxable profits for every £1 spent. So worthwhile making a application at least.
Is your business eligible?
First, we would ask you a few questions to establish that your firm is indeed eligible to make a claim. Having established that you are we collect specific information related to the related project(s).
These items can include staff costs, computer costs, subcontractors and freelancers involved, consumables, fuel and power usage.
The R&D Report
We will create an R&D report which highlights the R&D and the relief being sought. We will go through this with you for you to sign off.
Claiming the R&D relief
Once the R&D report confirmed it will be sent to HMRC and the tax relief or reclaim will be applied but HMRC.
If there are any queries about the R&D report we submit, we will speak with HMRC on your behalf to answer their questions.
The basic requirements in order to qualify for SME R&D Relief are:
- A project focused on and issue that needs resolving
- Intention for an advance in science or technology
- Project relates to the businesses trade either an existing one or one it intends to start based on the R&D results
- Explanation of how the project(s) are looking to overcome uncertainty surrounding the advancement to be achieved
- Issue not easily overcome by a professional working in the field
- It can still be an advance if the process, product or service has been developed by another company, but it is not publicly available
- A project being eligible can research or develop a new process, product or service or improve and existing one
Qualifying expenditure
- Software used
- Staff costs of those involved
- Consumables and other items used in the project
- Externally provided human resources (65%)
- Outsourced R&D costs (65%)
- Also, R&D allowance allowing for full relief for qualifying expenditure
Time Limit
The time limit is 2 years from the end of an accounting period which corresponds to the corporation tax return deadline.
SME (small medium sized enterprises) definition
An SME is a company if,
- I employs less than 500 staff members
- Turnover below EUR 100m or balance sheet total below EUR 86m
Talk to us about your R&D claim.
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October 2, 2024Naylor Accountancy have been my accountants for 8 years now. They are supportive and always available when I have queries. A trusted company to help support me and I highly recommend them.
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September 2, 2024I recommend Naylor Accountants very highly and without hesitation. I could not have run my business without them. Excellent service and very personable. I trust them explicitly with all my financial affairs. You won’t find better.
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July 2. 2024Have worked with Nikolai, Andy, Leslie and the team for over 5 years - through good years and not so good years. They've always been easy to contact, supportive and knowledgable - sorting through the ever changing HMRC, Companies House, accounting systems and more - at speed and with a smile.
JB Morgan
April 2, 2024R&D Relief Should your business make a claim?
We can help you to find out if your firm is eligible and compile a comprehensive report for HMRC on your behalf.