R&D explained
Imagination. Innovation. Iteration. You do this, and we can help. Here’s how.
WHAT IS RESEARCH AND DEVELOPMENT?
Solving unusual business problems.
Imagination. Innovation. Iteration.
At RDA, we know these are the key ingredients to research & development. But how you explain what you are doing is sometimes as hard as doing it in the first place. That’s where we can help. We specialise in achieving Research and Development Tax Credits for businesses across all industry sectors.
Our unique, one-to-one consultancy approach to client claims delivers the best possible outcome for enterprises of any size – from SMEs to large corporates. A successful claim will generate vital supplementary cash flows for your firm, genuinely reflecting and rewarding the effort and ingenuity you have put into solving unusual business problems.
We work for you directly or, if you would prefer, we also offer the specialist support your accountancy firm or tax advisor often needs when preparing and submitting complicated R&D claims. With the support of our claims expertise and our trusted relationships within the relevant department at HMRC, your R&D is conveyed in the best possible light.
All this is why RDA are trusted by firms ranging in turnover from £1million to £2 billion to support their innovation and handle their specialist R&D claims submissions, year after year.
WHAT IS RESEARCH AND DEVELOPMENT?
How you claim depends on the size of your company
Small and medium sized companies (SME)
The financial benefit on average will be 33% of the cost of the R&D project.
Fewer than 500 members of staff
Even a company with a large workforce measuring in the hundreds can be considered an SME in R&D terms.
Under €100m turnover or a balance sheet total under €86m
If a firm meets both criteria for its balance-sheet size and its turnover, then it is considered an SME for R&D claims.
Research & Development Expenditure Credit (RDEC)
The large company scheme calculates claims at 12% of your company’s qualifying R&D expenditure
More than 500 members of staff
If you have a very large workforce of 500 employees or more, your firm will automatically classify for an RDEC claim.
Large asset base
Companies classed as RDEC have balance sheets in excess of £75m.
We can help you identify your R&D
No one knows your R&D like you do, but sometimes it is tough to explain. That is why at RDA, we consider ourselves not only to be tax experts — but communicators too.
Your tax-relief submission cannot be a simple matter of form-filling. Only by truly understanding the projects you undertake can the true value of your R&D be conveyed in the language HMRC understands. That is why we pride ourselves on our unique, one-to-one consultancy approach.
In addition to the preparation and submission of your R&D Tax Credits Scheme claim, with RDA, you will have access to:
- a dedicated Client Manager on call
- plain-English bulletins on all government R&D regulations and directives
- a confidential R&D record-keeping service
- R&D best-practice coaching and workshops
- Intellectual-property assessment and advocacy
The purpose of HMRC’s R&D Tax Credits Scheme is to stimulate investment in research and development in the UK economy. We know your R&D is continuously evolving. That is why we maintain an ongoing, year-round relationship with our partners to work not only on their tax-relief claim but also to help facilitate their R&D itself.
With RDA on hand, you will maximise the returns you get both from your tax-relief application and from your finished R&D.
Develop together. It’s the RDA Way
PROJECTS THAT COUNT AS R&D
R&D tax relief can apply to any company in any sector
- A project must seek to achieve an advance in science or technology
- The project can be a new creation or an improvement
- Failure can still count as R&D
The activities that directly contribute to achieving this advance are R&D.
Improving existing processes or products, as well as creating new ones, involves R&D.
Even if the project doesn’t succeed or isn’t fully realised, R&D still takes place.
Get in touch
To make a claim leave us a few details and we’ll be in touch
If you would like to give us some background details here before requesting a call back, please do, and of our team will contact you as soon as possible.
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Request a call back from our experts
To request a call back at any time, one of our team will respond to you as soon as possible.
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How much is R&D tax credit claim worth?
R&D tax credits are calculated based on your R&D spend
Lots can qualify for R&D tax relief. Work you do in planning, designing, testing, analysing, adapting or creating new products or processes can all count.
- Corporation Tax reduction if you are profit-making
- Cash credit if you are loss-making
- Or a combination of the two
WE WILL DO ALL THE HARD WORK FOR YOU
What we will do for you
Undertake a final review
Undertake a final review of the completed report before sending to client
Prepare and submit
Prepare tax computations and calculation in preparation for submission to HMRC
Complete all checks
Complete final check of all documentation before submission to HMRC
Confim who is submitting
Confirm who is submitting the claim - us or the client’s accountant
Communicate
Communicate with the client and their accountant the expected result and value of the claim
Submit & follow up
Submit the claim ourselves or follow up with the clients’ accountant if they are sending it to HMRC
Check your eligibility
Find out now if you qualify for R&D tax credit by answering a few simple questions
Step 1 of 4
Is your company registered for Corporation Tax in the UK?
Check how R&D tax credits would work for you
Answer a few quick and simple questions to see where your company is eligible for tax credit.
Frequently asked questions
Can I claim R&D tax credits even if I haven’t paid Corporation Tax?
Yes. Even loss-making companies are eligible for R&D tax relief.
What kind of businesses can claim R&D Tax Credits?
All UK-registered limited companies are eligible – it really doesn’t matter what industry sector they operate in. A limited-liability partnership (LLP) can only claim if a Corporation Tax-paying firm outsourced some of its R&D to the LLP. Sole traders are ineligible.
What kind of expenditure qualifies?
There is a lot that can qualify for R&D tax relief. This can range from planning, designing, testing and analysis methods through to the creation and adaptation of materials, equipment or software. Even staff time given to things like the record-keeping, maintenance, security protection and training in relation to the R&D project can all count under the R&D Tax Credit Scheme. But it’s worth getting in touch to find out more.
Why would the government do this?
Throughout history, the UK – birthplace of the telescope, the telephone, the television and the text message – has been at the forefront of innovation and invention. To keep the country at the cutting edge, the government’s Industrial Strategy has committed to raising total R&D expenditure to 2.4% of GDP by 2027, up from 1.7% in 2018. And, because government research shows that every pound it gives out in R&D tax relief returns between £2.40 and £2.70 in extra R&D investment, the R&D Tax Credits scheme has been designed to facilitate this.
What could my claim be worth?
That depends on your company’s circumstances. But when it released its figures for 2018-19 – the year for which the figures are most recently available – the government found the UK’s biggest firms had made 7,105 claims under the RDEC scheme, for a total of £2.4 billion. That made the average large-company RDEC claim almost £350,000. There were 52,160 claims under the SME scheme with the average pay-out standing at £57,515. A further £265 million was shared by small and medium sized companies from the RDEC scheme.
How is it paid?
Some claims are purely for a reduction in Corporation Tax liability. But in some cases, an SME might use its R&D tax credit to reduce its tax bill to zero, and then take the rest as a cash payment. In other cases, the SME might carry forward its tax credit to future years. A large-company, RDEC claim will normally be paid back as a cash rebate on the paid tax.
CUSTOMER CASE STUDIES
How we’ve helped our clients
Let’s find out how we can help your business
Our consultants will advise you on how to identify where the R&D you have worked on qualifies for tax relief. The first step is getting in touch.
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Request a call back
Request a call back from our experts
To request a call back at any time, one of our team will respond to you as soon as possible.
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Any questions? Talk to our specialists today
Request a call back
To request a call back at any time, one of our team will respond to you within 24 hours
Call us today
Alternatively you can call us and chat to an R&D specialist.
033 33 444 026CLOSES AT 17:00
Request a call back
Request a call back from our experts
To request a call back at any time, one of our team will respond to you as soon as possible.
- Please selectAerospace and DefenceAlarms/CCTVChemicals, Paints and AdhesiveConstruction and Building MaterialElectronics and ElectricalEngineering and Machinery DesignMaterials, Finishes and ConstructionProjectsSustainabilityPharmaceuticals, Biotechnology and Medical ScienceTesting
Get in touch
To make a claim leave us a few details and we’ll be in touch
If you would like to give us some background details here before requesting a call back, please do, and of our team will contact you as soon as possible.
- Please selectAerospace and DefenceAlarms/CCTVChemicals, Paints and AdhesiveConstruction and Building MaterialElectronics and ElectricalEngineering and Machinery DesignMaterials, Finishes and ConstructionProjectsSustainabilityPharmaceuticals, Biotechnology and Medical ScienceTesting