Encouraging growth for companies that are seeking to achieve an advance in Science or Technology.
R&D relief is a valuable government tax relief that rewards companies in the UK for investing in innovative projects, that lead to an advancement in their fields. Since it’s conception in 2000 many companies have relied on Tax Credits to fuel growth for the future. However, there is still a high percentage of companies who mistakenly believe that their company or sector does not qualify to make an R&D claim.
But how does it work? In a nutshell, you must be able to demonstrate to HMRC that the product or service you are planning to include in your claim is, at a technological level, an advance on what is currently in the market. If you are investing in innovative projects, you can make an R&D Tax Credit claim to receive either a cash rebate and/or Corporation Tax reduction backdating for your last two accounting periods.