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