Did you know that R&D expenditure can qualify for up to 175% tax relief?

Enhanced tax relief for relevant R&D expenditure has been available since April 2000 and has been improved even further in recent years. There is no statutory definition of R&D, so some companies may not realise their activities could qualify for this generous relief.

Eligibility extends far beyond laboratories and science based research centres. The relief can be equally available to work carried out in a factory or in software development.

R&D does not necessarily have to result in the creation of a tangible end product. It can be the analysis of a process, so long as an advance in science or technology is sought through the resolution of scientific or technological uncertainty.

Small and medium sized enterprises can claim relief of up to 175% of qualifying expenditure. Such companies can also surrender losses arising from R&D and claim cash back from HMRC instead. Large companies can claim relief of up to 130%, although there is no cash back option.

To qualify, a company must spend over £10,000 on eligible R&D in a 12 month period.

How can Baker Tilly help?

Baker Tilly’s experienced team has built up considerable expertise in this area. 

We can:

• identify missed opportunities
• maximise current claims, taking into account the latest developments
• advise on the format of claims
• assess the current structure of global operations to improve the tax position across a group of companies.