R&D Tax Incentives to be Aware of

HMRC are offering some great tax incentives/breaks which many companies may not be aware of or indeed believe they can benefit from.

In the last 12 months a number of our clients have collectively benefitted from corporation tax savings in excess of £1.5million from the following areas, hopefully you can join them. Contact our team to discuss how we can help you benefit.


HMRC are keen to reward innovation in many industry sectors, you don’t need to be a new Mark Zuckerberg or have invented a cure for the common cold to make a claim.   Here is a great article from Management Today highlighting some other things you might not know about tax credits.

From 1st April 2015 the rate of R&D enhancement became 130% so in effect, if you’ve spent £100,000 on qualifying R&D revenue costs and these are included in the company accounts you will get an extra deduction of £130,000 against your company’s profits/losses in your tax computation when the company tax position is calculated.

There are 3 options for a company once an R&D report and calculations have been prepared:

  1. The R&D enhancement reduces the company’s tax adjusted profit and subsequently, also their corporation tax liability.
  1. The R&D enhancement increases a company’s tax adjusted loss, and a certain level of loss can be surrendered to HMRC for a repayable R&D tax credit.
  1. The R&D enhancement turns an accounting profit into a tax adjusted loss, and as above, a certain level of loss can be surrendered to HMRC for a repayable R&D tax credit

The R&D tax credit payable by HMRC is currently 14.5% of the amount of loss being surrendered.

Capital Allowances

If you have recently acquired, are considering acquiring, or are about to sell a commercial property on which no capital allowances have previously been claimed – there could well be scope to make a sizeable claim on qualifying items.

Or have you recently undertaken/or are about to undertake a sizeable refurbishment of your offices/premises and are unsure what tax breaks you may be entitled to?

Working closely with a highly reputable firm of Chartered Surveyors, we can evaluate the items on which a claim can be made and produce a report summarising the savings available.

One of our most recent undertakings saw a client save in excess of £120,000 corporation tax on the basis of a capital allowance claim.

Film Tax Credits

With a number of clients in the film industry, we have worked alongside them during all aspects of a claim. From the all-important ‘cultural test’ application, to ensure they get their BFI certification – a must if a claim is to be viable – to calculation of the tax savings and submission of the necessary information to HMRC. Read more on accessing film tax relief  in an article from BFI.

In a similar vein to R&D relief, a rate of enhancement of up to 100% is available on certain qualifying costs with a payable tax credit from HMRC of up to 25%.

For further details on any of the above, please contact our team on 01202 717867.

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