It was created 
to support businesses wanting to ensure their competitive advantage within the global marketplace and at the same time help the UK economy by encouraging scientific and/or technological innovation.
R&D Facts
- R&D tax relief is a long-standing tax incentive introduced to encourage UK businesses to invest in developing new knowledge and or capabilities delivered through products, materials, devices, processes or services.
- R&D tax relief claims are actively encouraged by HMRC. such claims are a well established statutory relief not a “scheme” or form of tax avoidance.
- R&D tax relief works by allowing businesses to include an additional deduction in calculating its taxable profits.
- Real tax savings or cash credits can be achieved so whether your company is taxpaying or loss making, it really can benefit from this tax relief.
For example, from April 2015 for every £1 of qualifying R&D expenditure identified, the following effective tax cash savings/benefits are achieved:
SMEs
- Payable credit for taxable losses = up to 33.35%
- Tax savings for profitable SMEs = 26%
Large companies
- Enhanced deduction (abolished from 2016) = 6%
- The new R&D Expenditure Credit* = 8.8%
* The value (calculated in accordance with the tax guidelines) of the R&D work is recognised above the line and loss-making companies can potentially claim the credit for cash.
Bedrock has considerable experience in compiling successful R&D tax relief claims for businesses. Our role is to cut through the jargon and simplify the tax rules to guide your business through the key information required to make a claim and put together on your behalf a robust, clear and concise supporting claim document to include the pertinent information that HMRC requires.
3 simple stages
Contact Bedrock for a free assessment as to the potential for your business to benefit from this relief by our R&D expert.
We manage the process of putting your claim together, guiding you through the information required – we endeavour to make this non-onerous, clear and jargon free.
We produce your supporting claim document for you to forward to your accountants who will include this on the company’s tax return.
Company’s generating tax refunds /cash credits typically receive these within 6-8 weeks of the claim being submitted to HMRC. If we are involved soon enough we can reduce your corporation tax bill before your tax payment is due – so you pay less tax to HMRC in the first place.
Read more on our website about R&D tax relief or give us a call on how we can work with you.
