R&D Tax Relief

In these unusual times of pandemic restrictions, many firms are seeing cash flow shortfalls, and every penny counts. Is your business aware of, and taking advantage of, the UK’s generous Research & Development Tax Relief schemes – which can be worth roughly 23p for every £1 of R&D expenditure, and can often be claimed in cash?

Government data suggests that many innovative small companies are failing to claim their full entitlement – or perhaps, any – R&D tax relief. Nearly half of all R&D tax relief granted in the 2019 tax year went to just 7% of claimant companies, even though business data suggests that nearer 50% of innovation that should qualify for R&D tax relief, is conducted by SMEs and new startups.

Did you know, for instance:

  • If you’ve claimed R&D relief of any kind, you can ‘surrender’ the tax loss to HMRC and quickly receive a cash grant from them instead?
  • Receiving grant funding may reduce the rate for a claim but does not disqualify a company from making a claim?
  • Claims can be made up to two years in arrears, and are better submitted separately from the company’s routine tax returns?
  • If your staff and premises have been used part of the time for R&D projects, you can claim for an appropriate proportion of staff costs, as well as certain costs for the premises?
  • Most business accountancy firms are not equipped to provide R&D tax relief advice, as it is not a common type of tax relief – leading many firms to under-claim or not to claim at all?

Newton Launch Systems Ltd can offer support for making R&D tax relief claims, on a commission basis – so there is only a charge if a claim is made or increased as a result of our support, and you won’t be charged more than the value of your claim regardless.

If you would like to know more about this service, and arrange a free discussion please