Whether you’re claiming R&D Tax Credits or just curious — we’ve got you covered.
- Direct access to senior specialists
- Year-round support, not just at claim time
- Free HMRC enquiry defence for all clients
Specialists in Innovation
Tax Incentives & Grants
Why businesses and advisors choose us
At Innovation Tax our unmatched knowledge and expertise across government innovation tax incentives such as R&D Tax Credits and the Patent Box; maximising Capital Allowances on commercial assets; and submitting Grant funding applications that have the maximum chance of success – means we can provide a single point for professional advice and practical support to both our clients and professional service partners.
Definition
What are R&D Tax Credits?
R&D Tax Credits are a government incentive designed to encourage companies to invest in innovative projects within the UK. They allow businesses to reduce their tax bill or receive a payable tax credit through a deduction of their R&D expenditures.
Understanding these benefits is crucial for companies striving to innovate and grow in an increasingly technology-driven market.
Recover up to 33% of the costs invested in innovation and advances in product, process, materials and software development.
How is the benefit paid
The R&D Tax Credits scheme provides two primary sources of relief:
1.
Corporation Tax Reduction
If your company is profit-making, the tax liability can be reduced (or a tax refund obtained for historical periods) by the value of the claim.
2.
Cash Payment
For loss-making companies, a 10/14.5% tax credit may be available, offering between 16-33% of eligible R&D expenditure back to your business.
Qualification
Qualifying Expenditure Categories
Discover what costs qualify for R&D Tax Credits to support your innovation efforts:
- Staff Cost: Salaries, wages, NICs, and pensions for employees directly or indirectly involved in R&D.
- Subcontractor Costs: A portion of costs for subcontractors directly involved in R&D.
- Externally Provided Workers: Payments to agencies for workers involved in R&D under the company’s control.
- Consumables: Materials, water, fuel, and power used or transformed in the R&D process.
- Software: Costs of software licenses, data and cloud computing used in R&D activities.
Latest Changes
Are you aware of the latest changes to the R&D Scheme?
Significant changes have been made to the R&D Tax Credit incentive recently:
- Merging of RDEC and SME Schemes: A new single scheme effective for accounting periods starting on or after 1 April 2024.
- RDEC Rate: Increased from 13% to 20%.
- SME Rates: Additional deduction rate reduced from 130% to 86%; payable credit rate for losses decreased from 14.5% to 10%.
- Enhanced Support for loss making SMEs: Enhanced support for loss making R&D-Intensive SMEs with a 14.5% tax credit rate.
- Emphasis on Domestic R&D: Emphasis on domestic R&D with restrictions on oversees costs.
- Digital and Detailed Claims Process: Mandatory digital claims and detailed documentation from August 2023.
- Expansion of Qualifying Expenditures: Inclusion of data and cloud computing costs.
- Claim Notification: For new claimants or for businesses who have not made a claim in the previous 3 years.
R&D Tax Credits Claim Process
Our unrivalled experience, streamlined methodology and technical expertise identifies all the innovation tax incentives and grant funding you can benefit from
01.
Eligibility Assessment & Pre Qualification of Claim
02.
Engage and Complete KYC Onboarding Process
03.
Technical & Financial Claim Assessment and Interviews
04.
Drafting of the Technical & Financial Claim Reports
05.
Claim Review, Quality Assurance and Submission to HMRC
Already Claiming
Support for Existing Claimants
Our benchmark assessment service is designed to help businesses like yours optimise your R&D Tax Credit claims and ensure compliance with HMRC guidelines. Here’s how our team of experts can help:
Beyond R&D Tax Credits : A Full-Spectrum Tax Incentive Strategy
The R&D Tax Credits is just one of multiple tax incentives available. We help you build a layered strategy combining:
Grant Funding →
Never miss an opportunity to apply for a UK grant: our team of experts will ensure your application has the best possible chance if success.
Capital Allowances →
Obtain tax relief on capital expenditure e.g costs incurred in the acquisition, refurbishment or alteration of commercial properties.
Patent Box →
Our Patent Box service aids companies in benefiting from reduced tax rates on profits derived from patented inventions, providing substantial tax relief.
Energy Incentives →
We help businesses claim energy tax incentives through Climate Change Levy Exemption, Energy Intensive Industries Tax Relief and UK ETS Compensation Schemes.
HMRC Enquiry Support →
We provide expert assistance in responding to HMRC enquiries, ensuring the response is clear, sufficiently detailed and in-line with HMRC's expectations.
The benefits of working with an R&D Specialist
We work with UK businesses to help them unlock the full potential of R&D Tax Credits. Our focus is on securing every eligible pound – so you can invest back into sustainability, growth, and innovation.
- Eligibility Assessment: Identify all qualifying R&D activities and expenditure in line with current guidelines.
- Application Support: Compile compelling claims and grant proposals to maximise your likelihood of success.
- Compliance Assurance: Ensure full adherence to HMRC’s new digital submission and pre-notification requirements.
- Deadline Management: Expedite your claim preparation and submission to meet critical year-end deadlines.