Research and Development Tax Relief

Gravitate Accounting helps companies create and submit R&D tax relief from HMRC. Discover the research and development benefits you can reap with us.

Accounting and Financial Management
We work with companies to help them with their financial management

What is research and development tax relief?

Research and development tax relief, also referred to as R&D tax relief, is a scheme implemented by HMRC to encourage businesses to develop new innovations, products or processes or improve current ones on a continual basis.

There is a time limit as well as eligibility criteria that businesses need to meet. At Gravitate Accounting, our tax consultant can advise on how you can leverage from research and development tax relief and assist in the application to claim the most cash back for your business.

Tax relief on research and development

The amount of tax relief you can claim on specific research and development projects your business funds depends on the size of your company, with small to medium-sized enterprises being eligible to claim more.

Not only can you claim back cash for every pound you spend on R&D, but you can also claim 300% of any NI contributions liability and PAYE funds you’ve spent over the last three years.

Other funds you can claim back are:

●     Subcontractor costs at the rate of 65%.
●     Other employee costs.
●     Software.
●     Material costs.
●     Utilities.

You can claim whether or not your company is profiting from your R&D efforts, but the timeframe in which you’ll receive your claim will differ.

"Zara, Mike, Sam, Claire, and the whole team at Gravitate are professional, knowledgably, friendly, and take a genuine interest in helping and understanding our business. Response time is excellent, everything is done on time, helping with VAT returns, HMRC, Year End, Xero training and those general account questions that come up from time to time. With Gravitate’s help we use Xero and Receipt Bank to improve efficacy and traceability."

Chris Simpson

Frequently asked questions about R&D tax relief

How does the R&D Tax Incentive work?

The research and development tax relief incentive encourages businesses to invest funds in developing processes, products, or services, or upgrade new ones. We’ve mentioned that you can claim cash back, but another option is to claim a reduction in the amount of corporate tax you pay. You can make a claim based on previous accounting periods up to two entire years.

What expenses qualify for Research and Development Tax Relief?

Multiple expenses qualify for R&D tax relief, including:
- External and internal staff
- Research and development that you subcontract
- Software
- Trials
- Consumables
- Prototyping
- Independent research

We would be happy to go through all of these in more detail during our initial consultation.

How do I claim a Research & Development Tax Credit?

The process for making an R&D tax relief claim involves:

- Confirming your eligibility.
- Calculating enhanced expenditure.
- Gathering supportive evidence for the accounting periods you’re applying for.
- Other evidence to support your claim.

When you partner with us, our tax consultant will work with you every step of the way, not only helping you create your claim but ensuring you claim as much as possible back from HMRC.

Got another question or want to discuss accounting and financial management?
Drop us a line and we'll get back to you.

Get in touch with us today & see how we can help your company

Get in touch here
or give us a call on 0114 321 7459
Google Reviews