How much are R&D Tax Credits worth to my company?

This is a question we often get asked and therefore thought it would be very helpful to share this information in a blog post…

There are a number of factors that influences the value of a company’s R&D Tax Relief claim.

The key one’s are listed below:-

• Is the Company profit or loss-making;
• The date the R&D expenditure was incurred;
• Is the company eligible under the SME or Large/RDEC Scheme.

The following tables below show the R&D tax calculations for a SME.

Example: Profitable CMS

Example: Loss making SME

*The Payable R&D Tax Credit is calculated by multiplying the lower of (1) Taxable Loss (after the R&D Tax Relief Claim), or (2) R&D Enhancement, by the Tax Credit Surrender Rate.

If you are interested in R&D Tax Relief for Large/RDEC claims simply click on the following link.

R&D Tax Relief is the UK’s most generous source of funding available to companies undertaking R&D and aims to promote innovation across the economy.

Your company could claim R&D tax credits if it has been:

• developing software
• designing, producing, or changing products
• changing its manufacturing processes
• working on development projects that are still work-in-progress
• changing to become more environmentally friendly.

Please feel free to read our previous article: What kind of companies can apply for R&D Tax Relief?. This provides very useful lists of qualifying activities covering manufacturing, engineering and software businesses.

How can Myriad help you to claim R&D Tax Credits?

The Myriad Associates Team handles your R&D tax credits claim from start to finish, which ensures that not only are your R&D tax credits claims maximised, but your team’s time in minimised to just a few hours in total.

By profiting from our specialist knowledge and experience, you can be sure of maximising your R&D Tax Relief claim. As a rule, Myriad submits R&D tax credits claims up to three times higher than in-house prepared claims and those filed by generalist accountants.

Our Technical Consultants interview your key technical staff before producing accurate and detailed R&D reports whilst our Cost Accountant analyses your R&D expenditure to produce a costing schedule. We then submit your claim to HMRC together with the appropriate tax returns and tax computations.

Myriad Associates have developed a R&D Tax Calculator, which can assist in calculating your company’s potential R&D tax credits. Please Contact Us to discuss your R&D projects and potential R&D tax credits claim on a case by case basis.