What are Research and Development Tax Credits, commonly know as R&D?

What are R&D Tax Credits?

Research and Development Tax Credits are part of a government initiative, which has been running since 2001, designed to encourage innovation across multiple industries in the United Kingdom.

R&D Tax Credits are a vital source of funding for UK innovators. Providing more than £5 billion in corporation tax & additional liability reductions and cash credits a year, R&D Tax Relief helps tens of thousands of companies invest in cutting-edge development work that accelerate their growth.
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But while R&D Tax Relief is relatively accessible – especially when compared to other sources of funding – countless UK businesses are still failing to claim the financial support they’re entitled to through this scheme. To clear up some of the uncertainties and misunderstandings around R&D Tax Credits experts, our experts have prepared this comprehensive blog covering the main things you need to know about this generous initiative.

What Projects Qualify?

To be able to qualify for R&D Tax Credits, the project must make an advance in the technology or science fields. Most of the time this will be the business’s existing trade. However, if you’re planning to branch into something new, this could also qualify.

If you are looking into a new venture HMRC's advance assurance could tell you whether your project will qualify for R&D Tax Credits. Contact us to find out more about advance assurance.

How did you overcome the uncertainties in the project? If an expert can't explain how you would overcome this uncertainty, you will need to explain what testing, procedures, and analysis your team carried out in order to overcome these uncertainties.

You can claim R&D Tax Relief on eight kinds of development costs, including staff, contractors and consumables. How much you can claim back varies depending on the cost and whether you are claiming for SME R&D Tax Relief or RDEC.
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Here is a breakdown of the costs you can claim and how much you can claim back.

What To Expect

Our Process

01 Claim Preparation

We will gather the information needed from you in relation to your claim.

02 Claim Submission

Once technical and financial specialists prepare the claim and begin the process of getting your R&D Tax Relief.

03 Your Tax Relief

Once HMRC have checked your claim, you will then receive your tax relief for any qualifying activities in your claim.

Using Five Star Alliance to Submit R&D Claims tile

At Five Star Alliance, our mission is to provide our clients with the best possible service at affordable costs. Our highly trained specialists are ready to help your business grow and succeed in any given industry.

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