UK R&D Tax Credits – HMRC explains on YouTube.

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Incentives and Reliefs Research and Development (R&D) Tax Credits

In 2000 the UK government introduced a scheme to encourage scientific and technological innovation within the United Kingdom.

R&D is a Corporation Tax (CT) relief that may reduce a company’s tax bill if the company is liable for CT. In some circumstances a payable tax credit may be received.

You can find out more about the UK’s R&D tax relief and which expenses qualify in HMRC’s short YouTube videos:

What is Research & Development tax relief? 

What expenses qualify for Research & Development tax relief?

How to claim Research and Development tax relief for grant funded work

There is more detailed guidance, including case studies, on GOV.UK

Research and development tax relief: Making R&D easier for small companies.

The guide provides:

  • straightforward definitions and explanations of the scheme
  • details of qualifying costs
  • guidance on how to make a claim under the Small Medium Enterprises and
  • R&D Expenditure Credit schemes
  • advice on where to find help and further information.

The guide also has a section on how to make a claim including the boxes you will need to complete on the CT600.

If a small company carries out R&D for itself or other companies, it could qualify for Advance Assurance.

This means that for the first three accounting periods of claiming for R&D tax relief, HMRC will allow the claim without further enquiries.

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