What are R&D Tax Credits?

In recent years the Government has encouraged businesses to invest in innovation and research and development (R&D) in order to develop new products and services, and boost productivity and economic growth.


One misunderstood tool that the Government has deployed is R&D Tax Credits which are a tax break for businesses first rolled out in 2000.


A surprisingly wide range of businesses across a variety of sectors are eligible for R&D tax credits, not just the obvious ones that come to mind when thinking about high technology and the like.


R&D tax credits can be claimed through your accountant or through specialists, though in practice both routes can have problems.


Many smaller accountants are not knowledgeable and lack confidence when dealing with R&D tax credits, in which case it is often better to use a specialist.


However, specialists can also have their limitations since their fees tend to be higher and they tend to have a minimum claim limit that does not suit smaller businesses.


If you think you might be eligible for R&D tax credits and want to find out more, please get in touch



Am I eligible?

If you think that you might be eligible to claim R&D tax credits, the following types of generic questions are useful:


  1. Have you made any bespoke products or customised products?

  2. Have you developed any new products or been involved in introducing them?

  3. Have you carried out design work in-house or outsourced design work?

  4. Are you regularly problem-solving for customers’ needs?

  5. Have you made significant improvements to your manufacturing processes?

  6. Have you developed or improved any software for your business?