How R&D tax relief can benefit your business
R&D tax relief could be a significant boost for your business. The relief allows an SME carrying out qualifying R&D projects to claim a tax deduction of 230% of the cost of qualifying R&D costs, meaning you could get up to around 25% of qualifying research costs back in the form of a cheque from HMRC. Qualifying companies can claim every year so that tax saving can add up significantly over a period of time.
Example
| Qualifying R&D expenditure |
£20,000 |
| R&D tax relief deduction |
£46,000 |
| Tax saving |
£9,200 |
The table below shows how much much our clients have saved.
| Business |
Qualifying R&D project |
Tax saving over one year |
| Software development |
New banking software |
£106,000 |
| Designer of non-chemical treatments for specific medical conditions |
Development of specialist lighting |
£43,000 |
| Website developer |
New software to allow clients to share data |
£37,000 |
| Manufacturer of antennas and aerials |
New product development |
£25,000 |
| Manufacturer and packer of speciality chemicals |
New technology to improve processes |
£22,000 |
| Underwater lighting and camera solutions |
Fibre optics available |
£22,000 |
| Packaging manager |
Development of new lightweight pallets |
£18,000 |
| Aircraft support |
Specialist software tool for an aircraft fuselage |
£14,000 |
| Manufacturer of hygienic process equipment |
Development of samplers and extruder feeders |
£5,000 |
| Vintage motorcycle restorer |
Development of new bike valves |
£5,000 |