0117 926 9022 white phone icon

Large company RDEC claims and services

ForrestBrown has developed an award-winning approach to large company R&D tax credit claims. We tailor our specific RDEC service to your company’s needs, drawing on our specialist technical firepower to deliver maximum value.

Regardless of the size and complexity of your company, our approach is robust and will withstand close scrutiny from HMRC. Our seat on HMRC’s R&D Consultative Committee gives us insight into their latest thinking. We continually refine our process to ensure it meets their expectations and delivers value to you.

In addition, we offer you a level of specialist technical firepower that is unrivalled and won us ‘best independent consultancy firm’ at the Taxation Awards 2018.

ForrestBrown leadership team

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.

RDEC rate

Large companies benefit from an RDEC rate of 12%. The R&D expenditure credit you receive is taxable at the normal Corporation Tax (19%) rate. This means the net benefit is worth 10p for every £1 you spend on qualifying R&D.

Since its introduction, the government has gradually increased the generosity of the RDEC incentive. It last increased the rate of RDEC in the Autumn Budget 2017, which took effect from 1 January 2018.

RDEC calculation example

The following example shows what you can expect your large company R&D relief to be worth if you spend £10,000,000 on qualifying R&D.

£10,000,000 x 12% = £1,200,000 (above-the-line credit)
-19% (Corporation Tax rate) = £972,000 (after tax benefit)
£972,000 / £10,000,000 = 10% return on investment

How ForrestBrown work with large companies

Large companies usually choose to engage with us in one of two ways:

Man on the phone handling queries

Making a large company RDEC claim with ForrestBrown

We are able to manage your RDEC claim in its entirety with our end-to-end service. Our proactive approach means we are efficient with your time so that you can get on with running your business. Our team will create a robust and fully-maximised large company R&D tax credit claim in four to six weeks – it then goes to HMRC.

Our exact process will depend on your business and its needs, but you can expect it to begin with an information gathering stage. Next we will identify your qualifying activities and costs, and create a methodology bespoke to you.

Where appropriate, we will present your final claim to you as part of our approval process, and provide a clearance report. We take care of everything, including dealing with HMRC on your behalf.

Find out more about our claim process >
Working with HMRC to process your large company RDEC claim

ForrestBrown’s large company RDEC consultancy service

At ForrestBrown, we understand that as a large business you are unique and that you have specific challenges.

Although most of our large company clients ask us to manage their end-to-end claim on their behalf, this isn’t right for everyone – especially for large companies with in-house tax capabilities.

We have significant technical firepower and specialist sector knowledge that means we can deliver value whatever your challenge. If you are looking for assurance, process improvement, training or are facing an RDEC HMRC enquiry – we can help.

Read more about our R&D consultancy services >

Why choose ForrestBrown?

Our people

Our people forrestbrown

The specialist technical firepower we offer is unrivalled. Our team won ‘best independent consultancy firm’ at the Taxation Awards 2018 on the basis of their technical expertise.

Our team is made up of chartered tax advisers, accountants, PhDs, sector experts, lawyers, former HMRC inspectors, quality assurance and client relations experts. We will build you a bespoke team matched to your business and its industry that complements your in-house expertise.

The unique makeup of our team allows us to uncover qualifying RDEC expenditure that others may have missed. We also embed record-keeping processes that lead to larger, more robust claims in future.

Our team is passionate about fostering a culture of R&D, embedding it into strategic and business planning, where it can have maximum impact on decision-making.

Our HMRC experience

We have a unique understanding of what HMRC is looking for in RDEC claims. All we do is R&D tax credits. As a result, the volume of claims we submit means we are in touch with HMRC day in, day out. This is true across a diverse range of sectors. Our relationship with HMRC gives you confidence that you are protected from risk, and that you are receiving superior advice.

Jenny Tragner director
Jenny Tragner CA
Director

Member of HMRC’s R&D Consultative Committee.

Constantly refines our process keeping up-to-date with the latest requirements.

Tom Heslin technical specialist
Tom Heslin
Senior sector specialist

Member of HMRC’s software sub-committee.

Contributed to HMRC’s new guidance on software projects.

Malcolm Henderson - Technical specialist and former HMRC inspector
Malcolm Henderson
Former HMRC Inspector

Reviews each of our claims as part of our quality assurance process.

Our international scope

As part of US-based consultancy alliantgroup, we have international scope, resources and expertise. This means that if you are part of a multinational company, we’re able to advise you on UK R&D tax incentives as well as federal and state incentives in the US.

To find out more about claiming R&D tax credits with ForrestBrown, contact our expert team today: