What is R&D Tax Relief (SME)
Introduced in 2000, the R&D Tax Relief Scheme for SMEs is the main source of state support in the UK for innovative companies, and aims to encourage their efforts in developing and improving new products and services.
Who can benefit from R&D Relief
SMEs (According to R&D Tax Relief purposes, an SME has double thresholds respect to the standard European Commission definition):
– Less than 500 employees
– Either annual Turnover < €100 million OR total Balance Sheet < €86 million
– All entities within a group are included when calculating the threshold
– Any incorporated company conducting innovation, regardless of its sector of activity.
What are the advantages?
Enhanced deduction of 230% of eligible R&;D expenditure from a company’s taxable income. Effective cost reduction of 24.7% after applying the corporate tax rate.
Carrying the losses generated forward to offset against a future tax liability Surrendering the losses for a payable tax credit at a rate of 14.5% resulting in the company receiving a cash credit equivalent of 33.5% of what was spent on R&D Eligibility.
Sectors we help:
– Automotive and Transportation
– Banking and Insurance
– Digital Enterprises
– Energy & Environmental
– Healthcare and Pharmaceutical
– Material and Plasturgy
– Humanities and Social Science
– Video Games
R&D Eligible Expenditure for SME’s
– Staff Costs
– Subcontractor costs
– Externally Provided Workers
– Consumable Costs
– Software Costs