Who qualifies for R&D tax credits?
What costs qualify for R&D tax credits?
When putting together an R&D tax credit claim, we look for the following types of R&D qualifying expenditure:
What R&D tax credit scheme is right for my business?
What scheme you use to make an R&D tax credit claim will largely depend on whether you are an SME or a large company.
Fewer than 500 staff and either not more than €100 million turnover or €86 million gross assets. Most companies, including start-ups, fall into this category.
500 staff or more and either more than €100 million turnover or €86 million gross assets.
If you are classed as an SME for R&D tax credit purposes, your next step will be to make a claim via the SME R&D tax credit scheme. And if you are a large company, via the Research and Development Expenditure Credit (RDEC).
However, there are a few factors like grants and subcontracting that can restrict an SME from accessing the SME scheme. This means you may need to make a claim via RDEC – or via both schemes.
We help SMEs across all sectors receive millions of pounds every month to re-invest back into their businesses. It is possible to make use of R&D tax credits and grant funding together by using both schemes to ensure maximum value.
R&D tax credit schemes
|Who you are:||SME R&D tax credit scheme||RDEC|
|SME||Yes||Yes - sometimes|
Our team of chartered tax advisers save you time by preparing a robust R&D tax credit claim that uncovers all of your qualifying R&D activity and costs.Find out more about ForrestBrown's R&D tax credit process
R&D tax credit rates
SMEs are able to claim up to 33p for every £1 spent on qualifying R&D activities. The average claim made by SMEs in the UK is £53,876 (2016-17).
Large companies are able to claim up to 10p for every £1 spent on qualifying R&D activities. The average claim made by large companies in the UK is £272,881 (2016-17).
The R&D tax credit rates 2018 are show in the table opposite.
See how much your business could potentially claim below.