SEARCH PEOPLE ABOUT US CAREERS PAYMENT PORTAL CLIENT PORTAL AUTUMN BUDGET COVID SERVICES SECTORS INSIGHTS CONTACT US R&D TAX RELIEF / INCENTIVES HOME - HELPING YOU - BUSINESS TAX - R&D TAX RELIEF / INCENTIVES How to access HMRC tax relief The UK has a strong history of scientific and technological innovation. The government recognises the important contribution that innovation and the exploitation of associated resources can make to economic growth, and offers beneficial tax regimes to support this. BLOG BUDGET 2021 RESPONSE: R&D CHANGES IN THE AUTUMN BUDGET READ MORE WHAT IS RESEARCH AND DEVELOPMENT (“R & D”) TAX RELIEF? The definition of R & D is much broader than many businesses imagine and we have made claims for clients in a variety of sectors, including manufacturing, technology, logistics and property & construction. Profitable SMEs obtain an enhanced deduction of 130%, that equates to tax relief of up to 44% of the qualifying expenditure – effectively reducing the net cost to £56 per £100 of spending. The regime is particularly beneficial for early stage and loss-making companies, as a payable tax credit can be recovered from HMRC equivalent to 33.35% of the qualifying expenditure – effectively reducing the net cost to £66.65 per £100 of spending. BLOG HMRC R&D TAX CREDIT STATISTICS 2019 READ MORE LARGE COMPANIES AND COMPANIES UNDERTAKING R & D FOR OTHERS A tax credit is available, equivalent to 13% of the qualifying expenditure. This can be recognised as a taxable item above operating profit in a company’s financial statements, with the net amount of 10.5% payable to the company. WHO CAN BENEFIT FROM THE R&D REGIME? Any company that resolves difficulties or challenges and applies technology or science in doing this, should consider the relief, whether they undertake the work on their own behalf or on behalf of others. This includes businesses developing new or improved products, processes, services or systems and those that are technology, manufacturing or processing-led. SPECIALIST R&D TAX RELIEF SERVICES Our specialist tax team works with our clients to understand their businesses and to identify beneficial tax planning opportunities including: Considering the potential reliefs available, including Patent Box incentives. Protecting the intellectual property arising, including mechanisms to retain key staff. Identifying qualifying activities and expenditure. Navigating companies through the claims process. Building staff’s knowledge of the regime, to improve project recognition and recording. Developing systems to improve identification and recording of qualifying expenditure. In the last two years, we have assisted clients to recover in excess of £10m from HMRC, enabling them to reinvest these funds to drive commercial growth. BLOG PATENT BOX: OLD REGIME/TRANSITIONAL RULES ARE COMING TO AN END AS AT 30 JUNE 2021 READ MORE CONTACT MENZIES R&D TEAM To speak to a partner or for more information about the tax services we offer please contact one of the Menzies LLP offices or complete our contact from below. YOUR NAME * YOUR COMPANY * YOUR EMAIL * YOUR CONTACT TELEPHONE * WOULD YOU LIKE TO RECEIVE EMAIL NEWS UPDATES?* YESNO HOW DID YOU FIRST HEAR ABOUT MENZIES? * --- Internet search (Google/Bing/Yahoo/other) Social media Recommendation (friend/colleague) Recommendation (existing Menzies client) Xero Certified Advsior listing Recommendation (bank, solicitor, accountant) At an event Trade association Xero Article or blog post Advertisement SUBJECT YOUR MESSAGE SERVICE HEAD ANTHONY LALSING - ACA, CTA DIRECTOR Anthony Lalsing is a Tax Director at Menzies, where he heads up the Innovation and R&D team, specialising in making R&D tax relief claims. VIEW PROFILE BUSINESS TAX Tax Advisory – thinking of selling your business? 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