Finding R&D challenging?

Does your company have to overcome technological challenges to develop new products, processes, materials or services? If so, have you considered claiming the generous R&D tax incentives that may be available for the type of work?

The latest guidelines on the meaning of R&D make it clear that activities that seek to achieve an advance in technology through the resolution of technological uncertainties are R&D, provided that the solution is not readily available or deducible by a competent professional working in the field. So the good news is that any development work where the personnel face considerable technical challenges has the potential to qualify for the tax relief.

The relief takes the form of a cash benefit of up to 24% of eligible revenue costs for loss-making SMEs, whilst profitable SMEs can claim a benefit of up to 15% plus immediate tax relief for capital R&D expenditure. By contrast, the relief for large companies is lower and does not include any immediate cash benefit for loss-makers.

For more information, download our publication Opportunity to grow (PDF, 289 KB).