R&D tax relief could be a significant boost for your business. The relief allows an SME carrying out qualifying R&D projects to claim a tax deduction of 230% of the cost of qualifying R&D costs, meaning you could get up to around 25% of qualifying research costs back in the form of a cheque from HMRC. Qualifying companies can claim every year so that tax saving can add up significantly over a period of time.
Example
| Qualifying R&D expenditure | £20,000 |
| R&D tax relief deduction | £46,000 |
| Tax saving | £9,200 |
The table below shows how much much our clients have saved.
| Business | Qualifying R&D project | Tax saving over one year |
| Software development | New banking software | £106,000 |
| Designer of non-chemical treatments for specific medical conditions | Development of specialist lighting | £43,000 |
| Website developer | New software to allow clients to share data | £37,000 |
| Manufacturer of antennas and aerials | New product development | £25,000 |
| Manufacturer and packer of speciality chemicals | New technology to improve processes | £22,000 |
| Underwater lighting and camera solutions | Fibre optics available | £22,000 |
| Packaging manager | Development of new lightweight pallets | £18,000 |
| Aircraft support | Specialist software tool for an aircraft fuselage | £14,000 |
| Manufacturer of hygienic process equipment | Development of samplers and extruder feeders | £5,000 |
| Vintage motorcycle restorer | Development of new bike valves | £5,000 |