The R&D tax relief is aimed at entities that are registered for UK corporation tax, so primarily UK companies.
The relief itself is administered through the company corporation tax filing regime.
What are some of the key benefits?
- Cash paid to companies that are pre-revenue and / or loss-making to reward them for undertaking R&D work – even if no tax has been paid by the company as yet!
- Reduction in corporation tax payable or refund in cash for those companies that are profitable
- Average claims for SMEs of c£50,000+
- Can be claimed year on year
- Administered by dedicated specialist HMRC R&D Units across the country
- Typical HMRC review process of 28 days from submission
- HMRC Advance Assurance process for first time claimants
- Can go back two years retrospectively to claim for earlier projects
- No matched funding
- No equity to give away
Despite these benefits, it is surprising how many companies continue to overlook this government tax incentive and potentially miss out.
With this in mind, we have recently set up a new course on the UK R&D tax relief that might prove to be a useful primer for founders or entrepreneurs who would like to learn more about this attractive UK tax incentive and how you might benefit.
You can subscribe below: