Claiming 225% tax relief on research and development activities


If you’re a small or medium sized enterprise paying corporation tax and investing in research and development (R&D) then you could be set for 225% tax relief on this investment. This means for every £100 of qualifying costs your company could have the income on which Corporation Tax is paid reduced by an additional £125 on top of the £100 you have spent.

This tax relief is for allowable costs from 1st April 2012 and is for companies that are a going concern at the time of applying, and also at the time when the credit is paid.

If your company isn’t small or medium sized then you can claim under the Large Company Scheme where the rate is 130%.

Your company can claim for R&D relief if the R&D project seeks to ‘achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty’. 

Explained by Amy Bryan of Jan McDermott & Co: "Whilst this may sound complicated, a lot more projects qualify for R&D Tax Relief than you can imagine. As a company we have successfully identified many qualifying R&D projects for our clients and as a result saved them a lot of money by reducing their tax bill, sometimes to nil and, on occasions, getting our clients a tax rebate."

Please contact or call Amy on 0845 9000 691 if you would like Jan McDermott & Co to help identify relevant costs and make a claim on your behalf. 

Useful links:

Corporation Tax: Research and Development (R&D) Relief