Introduced by the British Government in 2000, Research & Development Tax Relief is intended to incentivise businesses to invest in innovation, allowing you to claim a proportion of the money you have invested to improve your industry. While you can use our calculator to get a quick estimate of how much you are entitled to, SME businesses can claim up to 33% of their incurred costs while performing R&D activities.
Quite often when we first speak with companies, their interpretation for R&D activities is different to HMRC. Research & development activity can be undertaken in almost any industry and can include trying to make something cheaper, quicker, smaller/larger, stronger 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 are 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.