Advice In Brief: Who can claim Research and Development Tax Credits?

Advice In Brief: Who can claim Research and Development Tax Credits?

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Any UK limited company with qualifying R&D spend can submit a claim for R&D Tax Credits, whether they are a profit or loss-making enterprise.

There are currently two schemes available: The Small to Medium Enterprise (SME) and RDEC schemes, and which scheme a company can apply through will depend on certain criteria, such as employee numbers and turnover, with the two schemes designed to reward research and development activity for companies of all sizes.

Due to the wide-ranging nature of research and development, it is estimated that 78% of businesses, across all sectors, could be eligible for either scheme. If your business is trying to innovatively resolve certain challenges with some level of risk, you are carrying out the right type of R&D.

If a company is problem solving and looking to overcome technological difficulties by creating new products and services or improving existing ones, then they are likely to be eligible – the outcome of the R&D doesn’t even need to be successful!

Want to see how much you could claim back? Click here to use our free online calculation tool.