How to claim R&D Tax Credits

Innovative Partners make the process simple, providing a complete end-to-end service in claiming R&D tax credits on your behalf.

  • We’ve secured millions of pounds in benefits for UK clients, identifying £3.3 million in eligible R&D activity every single month.
  • Every week we help companies to secure approximately £250,000 in Tax Credits.
  • We reduce the risk of a HMRC enquiry and will defend your claim.
  • 100% success rate on all our claims to date.

How to claim R&D Tax Credits

Innovative Partners make the process simple, providing a complete end-to-end service in claiming R&D tax credits on your behalf.

  • We’ve secured millions of pounds in benefits for UK clients, identifying £3.3 million in eligible R&D activity every single month.
  • Every week we help companies to secure approximately £250,000 in Tax Credits.
  • We reduce the risk of a HMRC enquiry and will defend your claim.
  • 100% success rate on all our claims to date.

What are R&D Tax Credits?

Introduced by the British government in 2000, Research and Development Tax Credits are intended to incentivise businesses to invest in innovation, allowing you to claim back some of the money that you have spent on trying to improve your industry. While you can check our calculator at the bottom of the page to get a quick estimate of how much you could be refunded, SME’s can potentially claim back up to 33% of costs incurred while performing R&D. The three main types of tax credits you could receive are as follows:

Payable cash credit
For loss-making SMEs, the payable cash credit is not treated as taxable income. For loss-making Large Companies, the payable cash credit is treated as taxable income.

Rebate of corporation tax
Companies that paid tax in the previous two years can roll back the relief to get a rebate of Corporation Tax. (This is tax they would not have paid if they had made the claim at the time.)

Enhanced deduction
That can be carried forward. Some companies will have no option but to keep the relief for use in future years and others will choose to do so because they are confident that they will be paying tax at a higher rate in the future.

What kind of activity qualifies?

What constitutes R&D for most people may be very different from HMRC´s interpretation. At best this leads to wasted time, but in the worst case scenario it could lead to a HMRC investigation.

Qualifying R&D activity can…

  • be undertaken in almost any industry, and
  • can include trying to make something cheaper, faster, smaller, larger or longer, etc

It can even include duplicating a product, process, service or device, as long as it’s in an appreciably improved way.

According to HMRC, a company is undertaking R&D when they’re…

  • overcoming technological uncertainties,
  • through achieving an advance in technology, and
  • which isn’t readily deducible by a competent professional.

Encouragingly, R&D is still deemed to have taken place whether or not the project is actually successful; it’s the ‘seeking’ that counts.

What our customers say

R&D Tax Credits Calculator

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Read our FAQs

You can find quick answers to many questions you may have below:

How much can I claim?

This depends on your company’s size; SMEs can claim around 14-33% on all qualifying costs. On the other hand, if you have a large company, a credit amount of 8.8% is available under the R&D scheme.

Do I have to be a Limited Company to qualify for R&D tax credits?

The Research and Development Scheme isn’t available to all businesses in the UK; only companies accountable for Corporation Tax (limited companies) can claim Research & Development Tax Credits.

Can I backdate my R&D claim?

Claims can include any qualifying costs which have been made in the last two accounting years of your company.

What types of activities qualify for R&D tax credits?

In the development of new products, services, or processes there are often technological advancements that are required along the way. In order to qualify as R&D, it must be shown that the pursuit of any advancement included a level of uncertainty.

How much do you charge?

For each R&D claim submitted for each accounting period, we will charge a fee of 25% (plus VAT) of the benefit created per claim. Our fees are contingent on the success of each R&D claim being processed by HMRC.

Can I still claim even if my project isn’t finished?

The idea of R&D is to reward businesses for innovating, and as such you can claim for projects even if they are unsuccessful or have not yet been completed.

What documentation do I need to provide?

The only documentation that you will need to provide is a copy of your accounts and your CT600.

How are R&D tax credits paid?

R&D Tax credits can be paid in three different ways: cash credits, a Corporation Tax rebate, or an expenditure that you may take forward against future profits.

How long does this all take and when can I expect to receive payment?

Claims can be prepared within a short timeframe; once we have secured all the necessary information, we can usually have everything ready within 4 working days. Waiting for HMRC to approve a claim takes a little longer, but they typically pay out
the money within 4-6 weeks.

Will HMRC investigate my R&D tax claim?

HMRC may request more information, but we deal with this on your behalf. While there may be some questions asked, we have never had a claim rejected.

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