Research and Development (R&D) tax relief is a government tax incentive set up by HM
Revenue and Customs (HMRC), to reward Limited companies for the expenses in innovation and the research and development within the innovative activity.
Firstly, the government has designed this tax relief with the country’s future in leading technology and innovations in sight. Therefore, they are rewarding businesses that are developing or improving products, processes, systems and materials.
HMRC R&D tax relief was introduced for SME ‘s in the year 2000 as an incentive to encourage
scientific and technological innovation in the United Kingdom. Later allowing large companies to
apply to the tax relief in 2002. In the past 19 years, there were frequent improvements to the rules these vary from improving rates of cost
augmentation and removing PAYE/NIC caps, to changes to staff cost qualifications. Furthermore, in
2009, the Corporation Tax Act was amended to include a clearer representation of R&D and the
applicable guidelines, to help companies identify what it constitutes and if it applies to them
The government noted the paramount positive impact on economic growth HMRC R&D initiative had on innovative businesses, hence they have committed to an additional investment of £4.7 billion over the next four years in Research & Development funding. The main aim of the
increased investment is to boost the businesses innovative productivity in the UK, as when it has been
compared to other European countries such as Germany and France, the United Kingdom was
diminished by contrast.
Additionally, to the countries improvement in innovative worldwide standards, HMRC may
see a return on the tax rebates issued as companies reinvest into their progression. For
example, a great deal of what a company spends their capital on leads to an increase in profits,
which in turn leads to a higher corporation tax.
How can SHENCOH help with R&D tax?
Here at Shencoh we have a large team of research and development tax credit specialists, we only focus on helping you get the maximum claim possible. We have a unique method and process to R&D claims, which has found us to have a 100% success rate when making research and development tax credit claims for clients. Our team are only focused on getting the largest possible claim for each client and our approach to R&D claims is adjustable for every client and their needs.
If you own a Small to medium enterprise and are currently innovating to help with the progression of society or industries, then you will be eligible for research and development tax credits that can be available to you from the HMRC as a cash sum or a tax rebate. Shencoh , as previously stated, will help you towards the best claim possible with our unique approach to the R&D tax credit claim, which on average, is £54,000. This money can be a useful investment back into the organisation or project that you are currently working on. The money that is invested can fund more innovation which in turn will grant you a larger amount of research and development tax credit for the next year, and if you enjoy our user experience, as many do, we will help you claim the next year as well.
To find out if you are eligible, and to speed up the R&D claim process, take the shencoh Eligibility Quiz to find out if you have qualifying R&D expenditure.
Shencoh is an R&D tax specialist company, with methodology and practices recognised by HMRC. We pride ourselves on not taking more than 3 hours of your time from start to completion, on a no win no fee basis. If you are interested in learning more or need help putting a claim in, please fill in the contact form here or give us a call on 0161 757 3657.