Expert Financial Solutions
Research & Development Tax Credit
How ADS Accountants Can Help
ADS Accountants specialise in navigating the complex R&D tax credit landscape. We review your projects, identify qualifying activities, and calculate eligible costs. We work closely with you to maximise your claim while ensuring full HMRC compliance.
Our expert guidance helps you avoid pitfalls and secure the funding your innovation deserves. With ADS Accountants, claiming R&D tax credits becomes straightforward and rewarding.
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Maximise Your R&D Tax Relief
We identify all qualifying activities and costs to make the claim process straightforward and rewarding for your business.
R&D tax credits are government incentives designed to reward UK companies investing in innovation. They provide funding to accelerate research and development, hire staff, and grow your business. Introduced in 2000 for SMEs and expanded in 2002 to large companies, these credits support economic growth by encouraging new technologies. Many industries qualify, especially manufacturing, IT, and scientific sectors.
The relief can reduce your Corporation Tax bill or provide a payable tax credit, helping fund future innovation.
If your company spends money developing or improving products, processes, or services, you may qualify for R&D tax relief. Claims can result in cash payments or reductions in Corporation Tax. HMRC provides guidelines defining qualifying R&D. From 1 April 2024, claims fall under a merged scheme with specific rules.
Despite recent changes and increased compliance, R&D tax relief remains a valuable funding source. Loss-making SMEs may also qualify for enhanced support. Expert advice ensures you claim with confidence.
To qualify, your company must be a UK limited company subject to Corporation Tax.
You need to have conducted qualifying R&D activities and incurred costs on them. Qualifying R&D generally involves scientific or technological innovation. Activities in arts, humanities, or social sciences typically do not qualify. HMRC excludes certain sectors like care homes, retail, and hospitality. If your business is innovating in science or technology, you could be eligible to claim.
Qualifying costs include staff salaries, employer NIC, pension contributions, and reimbursed expenses. Payments to subcontractors and freelancers may also count.
Materials and consumables, such as heat, light, and power used in R&D, qualify too. Software licences and some cloud costs are eligible, along with payments to clinical trial subjects. Identifying all qualifying expenses maximises your claim. Accurate project boundaries are important to include only eligible activities.
The early 2020s brought changes like lower SME rates, a merged RDEC scheme, and increased HMRC scrutiny. Many businesses reconsidered R&D tax credit value.
However, it remains vital funding, especially for loss-making SMEs qualifying for Enhanced R&D Intensive Support. With trusted expert guidance, you can navigate new rules confidently and continue benefiting from these incentives. R&D tax relief supports your innovation and long-term growth.
HMRC data shows the average SME R&D tax credit claim in 2022–23 was about £81,000. Large companies claiming under RDEC averaged over £291,000.
The amount depends on qualifying expenditure and scheme rates. For SMEs, relief rates can reach up to 27% on eligible spend. Large companies typically claim around 10.5% to 16.2%. Effective claims can transform development costs into valuable tax savings or cash payments.
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