Aston Shaw logo

Research & Development Tax Credits

Research and Development (R&D) tax credits are a tax incentive brought about by the UK Government. These credits were introduced to encourage companies to invest in R&D.

Tax credits can be used to reduce your tax bill or claim payable cash credits as a proportion of your R&D expenditure. If your business carries out research and development then you may well be eligible for R&D tax credits – which can save your business money.

There is a common misconception associated with R&D tax credits; eligibility isn’t relegated to companies with high-tech research labs full of people in white coats. In fact, any company that spends money trying to improve a product or service through innovation and technological advances using qualified staff and appropriate project controls are likely to be eligible.

There are different schemes available, each tailored to different business types:

The SME Scheme – This scheme is for companies with less than 500 Full-time equivalent (FTE) staff. The company must satisfy at least one of the following criteria: revenue less than €100m or balance sheet assets less than €86m. Under this scheme, the level of tax relief can be as much as 230%. In addition to this, loss making SMEs have the option to surrender some of their losses for a payable cash credit from HMRC.

The Large Company Scheme – This scheme is for companies with over 500 FTE staff, or with revenue greater than €100m and balance sheet assets greater than €86m. The rates for R&D tax relief for large companies is currently 130%.

Still unsure as to whether or not you’re eligible, or just need help applying? Contact us today.

Do You Still Need to Submit a Self-Assessment Tax Return?

October 2017

HMRC engraved on stone building

Are you one of the two types of people no longer required to submit a self-assessment tax return? Simple Assessment first took effect in September 2017, which means some taxpayers no longer need to disclose information about their income via a self-assessment tax return. The term ‘Simple Assessment’ may ring a bell, it’s a term […]

Read more
Client Login

Secure Document Exchange Login

To request access to use the Client Login feature, please email:


client@astonshaw.co.uk

Username:
Password:

You have Successfully Subscribed!

Secure Document Exchange Login

To request access to use the Client Login feature, please email:


client@astonshaw.co.uk

Username:
Password:

You have Successfully Subscribed!