Are you a large company for R&D tax credit purposes?
The definition of a large company for R&D tax credits depends on three criteria: headcount, turnover and gross assets.
If you employ 500 staff or more and have either a turnover of more than €100 million or €86 million in gross assets, you are classed as a large company for the purposes of R&D tax incentives.
These figures include your worldwide headcount and turnover and assets. And if your company is part of a group, then these figures apply for your whole group.
RDEC scheme for large companies
The R&D tax incentive for large companies is called the Research and Development Expenditure Credit (RDEC). It was first introduced on 1 April 2013.
Unlike its predecessor, the Large Company scheme, your benefit can be shown above-the-line (ATL). This means it is visible in your accounts and can positively impact your investment decisions.