How To Qualify For R&D Tax Credit

How To Qualify For R&D Tax Credit

When it comes to submitting an R&D tax relief claim, the first thing is to make sure that the project your company has recently undertaken definitely qualifies for R&D Tax Credits. Only then can you confidently embark on a tax relief application in an efficient manner, where you know you won’t be wasting a serious amount of time and effort.

The Incentive Behind R&D Tax Credit

Unveiled in the year 2000 by the UK government, Research and Development (R&D) Tax Credits are essentially a tax incentive that rewards companies for investing in innovation. They are a vital financial source for organisations that want to accelerate their R&D programme and expand their operations.

Any company that has spent money on developing new services, processes or products recently – or that has enhanced an existing one – is likely to qualify for R&D Tax Credits. Once a successful application has been received, the credit is offered either as a Corporation Tax reduction or as a cash payment. The great thing about this too is that the activities which qualify for R&D are incredibly broad – in fact, they span just about every industry and sector. Plus, if you’ve never claimed R&D Tax Credits before, then you can claim relief retrospectively for your last two full accounting periods.

What To Do Next

There are huge chances that your business is doing R&D without even realising, As an expert we determine if your activities are eligible for R&D tax relief and assist you in gaining the best results.

Any company in any industry may be eligible for R&D Tax Credits.

The key is that the company must be undertaking development activities that seek to achieve an advancement in science or technology by creating new products, processes or services and hanging or modifying an existing product or service. Do enquire or to delve deeper into the possibilities of claiming R&D Tax Credits, be sure to contact RDT Active. We believe our consultants are the best in the business and our service is second to none and will provide you with the aid needed in processing a R&D Tax Credit claim.

What costs can my company claim R&D Tax Credits for?

There are several types of expenditure you can claim for when you put together your R&D tax relief claim. These include:

  • Staff costs, such as salaries, pension contributions, reimbursed expenses and employer’s NIC
  • Freelancers, agency workers and subcontractors
  • Various types of software
  • Consumables including power, heating and lighting that are used up or transformed by the R&D process.
  • Materials
  • Payments to clinical trial volunteers


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