What is R&D?

Research and Development (R&D) Tax Relief is a government incentive which rewards companies of all sizes for innovation and technological advancement. If you are overcoming technical challenges, developing new processes and/or improving existing ones, you may be eligible for R&D Tax Relief.

How does an R&D Tax Claim work?

Through carrying out innovative work and projects, you are eligible to reclaim some of your R&D expenditure by either reducing the amount of profits subject to corporation tax, or by increasing tax losses. The scope for identifying R&D is huge- in fact, it exists in every single
sector. If you’re making a claim for the first time, you can typically claim R&D tax relief for your last two completed accounting periods.

What are the benefits of an R&D claim for your business?

An R&D claim can have the power the transform your business, by making available much needed cash, your business can continue to grow and invest in further R&D.

Who is eligible to make an R&D claim?

Companies in every sector, undertaking innovative work, are eligible for R&D tax relief. Indigo has substantial experience assisting companies from a vast array of sectors within the construction industry.

Do not miss out on the opportunity to start your claim today; R&D claims can be submitted up to 24 months from your year end.

What counts as R&D:

  • Improvements to existing processes
  • Overcoming uncertainty
  • Solution to problem
  • Innovation & technology development

6 simple steps to making your R&D claim

FAQ’s

Let’s dispel some R&D myths…

If you haven’t paid corporation tax due to your company being loss making, you are still able to claim for R&D tax relief. This would increase your losses to reduce your future corporation tax bills.

Yes, staff costs, including salaries, employer’s NIC, pension contributions and bonuses, are part of the qualifying expenditure within an R&D claim.

Yes, you will usually be able to claim 65% of the costs paid to any subcontractor for qualifying activities.

You can make an R&D claim up to 24 months after your financial year end. For example, if your year end is March, the deadline for making an R&D claim for the period March 2019, would be March 2021.

You may still be able to make an R&D claim. However, receiving a grant will limit your potential claim.

Yes, being a large company in no way limits your ability to claim. However, it does unfortunately reduce the value of the claim.

Yes, the purpose of R&D tax relief, is to reward innovation. As long as the project’s costs and innovation fall within the financial year you are wanting to make a claim for, an R&D claim is possible.