Can you claim Research & Development Tax benefits?

If you are building innovative software that seeks to make an advancement in the field of technology then there is a good likelihood you will be able to claim either additional corporation tax relief against future or past profits, or a payable tax credit in cash by enhancing an existing or future loss. 

The full details can be found here on the HMRC official R&D guide however as part of the application process, Start-Up R&D will validate your claim given the technical information supplied and with some initial due diligence on the business itself.


What's it worth?

The tax relief on qualifying activity (mainly employee costs) from April 2012 is 230% - that is for every £100 spent on R&D activity, your business could have the income on which Corporation Tax is paid reduced by an additional £130 on top of the £100 already spent.

Furthermore, if your business is making a loss you can apply for an 14.5% payable cash tax credit on the lower of 230% of the qualifying expenditure or the amount of unrelieved trading loss in that period. 

The decision on whether to apply for a tax credit or to carry your losses forward pending a future taxable profit can be discussed with StartUp R&D.


How we help:

Start-Up R&D provides an extremely simple two step service which enables the entrepreneur to file a research and development claim themselves and gain the benefits discussed above:

Reports Templates

We provide you with two reporting templates that are bespoke to you based on the information supplied via the application form: 

1. A written template with full instructions on how to complete it and to provide sufficient detail to HMRC in order to correctly evidence the written element of your claim. 

2. A spreadsheet template, also with detailed instructions. This template allows you to detail and explain the numerical element of the claim and your qualifying costs. (You may need to acquire further information from an external payroll provider / accountant to complete this).

Review & Consultation

We provide a simple review and consultation service following the completion of our reports package. This process ensures that the numerical report has been completed accurately, reflects the correct level of claim based on the work completed and includes all the allowable expenses. It also ensures that the written claim reads appropriately and includes all the relevant material in order to maximise the success of the claim.