Research and Development is your company claiming all the relief that it is entitled to?

One of the most generous tax breaks for businesses is the enhanced relief for revenue expenditure on research and development (R&D). Many potential claims are missed because companies do not realise that they are incurring eligible expenditure. R&D tax relief is a government incentive to encourage companies to invest in R&D activities by claiming relief on qualifying costs. The rates of relief are:

• 225% of the qualifying R&D costs may be claimed as a tax deduction by SME’s (200% for expenditure prior to 1 April 2012)

• 130% of the qualifying R&D costs for large companies

• In addition, SME's may choose to 'trade in' their R&D losses and receive 25p for each £1 spent on qualifying R&D

• 100% allowances are also available on R&D capital expenditure

What is eligible R&D

Eligible R&D is work that is undertaken to resolve scientific or technological uncertainty aimed at achieving an advancement in science or technology. 'Advancement' may be the creation of a new product or process or the improvement of an existing one.

R&D does not need to be successful in order to qualify for the relief outlined above. As long as qualifying R&D has been undertaken then the relief is available. In addition, a company may qualify for the relief even in the situation where the work has been outsourced to a third party.

R&D is not confined to companies within the technology sector. Dains make claims for companies across a range of sectors including:

• Manufacturing

• Engineering

• Automotive

• Chemical engineering

Time limits

There is a time limit of two years from the end of the accounting period to submit an R&D claim within a corporation tax return.

How Dains can help you

We can greatly increase your chances of successfully claiming R&D tax credits. We can assess your claim to ensure that it meets all the requirements before it is submitted. Our service is efficient and will usually start with a meeting with the financial and technical members of staff working on the project. This meeting will enable us to gather information relating to the costs and details of the R&D project undertaken to establish whether the project will qualify for the enhanced R&D tax relief.

Flexible fees

We offer a variety of pricing options to suit your company. We can agree a fixed fee in advance, a contingent fee depending on the outcome of the R&D claim or a combination of the two. This way you can be sure that you will receive value for money.

For more information or for a free initial consultation please contact your local office or email: tax@dains.com