R&D Tax Credits are a very niche part of the UK tax code that could bring your company thousands of pounds in tax relief.
Tax Credits Explained
In order to encourage Research and Development the UK Government introduced R&D Tax Credits in 2000.
This has proved highly popular with with almost 90,000 companies claiming back £6.6bn in tax relief in 2021. R&D Tax Credits are a very niche part of the UK tax code that could bring your company thousands of pounds in tax relief.
- A government incentive aimed at advancing science and technology within UK companies
- Launched in the year 2000
- Rewards innovation, risk taking, and research and development
- You can backdate your claim up to two financial years
What can be claimed back?
R&D Tax Credits are calculated based on enhancing expenditure for research and development work, as the UK Government aims to reward innovation for SMEs and large companies.
- Staff wages and other related costs
- Payments made to sub-contractors and external workers
- The cost of materials consumed
- Software licensing costs
- Payments to clinical volunteers
- Light, heat, power and other utility costs