R&D Tax Relief
Research and Development (R&D) tax reliefs are designed to support companies that work on innovative projects. This encourages greater R&D spending, leading in turn to greater investment in innovation.
They can be claimed by a range of companies that seek to research or develop an advance in their field, this applies to both successful and unsuccessful projects. R&D tax reliefs work by reducing a company’s tax bill by an amount equal to a percentage of the company’s qualifying R&D expenditure.
Types of R&D Tax Relief
Different types of R&D relief are available depending on the size of your company, and whether the project has been subcontracted to your organisation.
Small and Medium Enterprises (SME) R&D Relief
- Less than 500 staff
- a turnover of under 100 million pounds or a balance sheet total under 86 million pounds
SME R&D relief allows organisations to claim a tax credit if the company is making a loss worth up to 14.5% of the surrenderable loss
R&D Expenditure Credit
Large companies can claim Research and Development Expenditure Credit (RDEC) for working on R&D Projects. Companies (including SMEs) can claim RDEC if subcontracted by a large company.
The RDEC is a tax credit that is 13% of your R&D expenditure.
Eligibility to Claim
To qualify for R&D tax relief, you must prove that your business has entered into a project to make an advance in science or technology that relates to your company’s line of work.
To qualify, you need to prove that your project:
Looked for an advance in science and technology (and not just for your business benefit)
The project must aim to create an advance in the overall field and not just your business. This means that an advance cannot be an existing technology that has been introduced into your sector for the first time.
Tried to overcome this uncertainty
You need to show evidence that the R&D needed research, testing, and analysis to develop it. You need to be able to explain the work you did to overcome the uncertainty.
Had to overcome uncertainty
This means that there is no existing evidence that something is technologically possible or how it can be done before you start your project.
Could not be easily worked out by a professional in the field
To prove that it could not easily be worked out, you can show other attempts to find a solution have failed.
Get in touch
See How We Can Help With Your R&D Tax Relief
Testimonials
What our clients say
“I have worked with Bespoke for several years now and have built up a very trusting relationship with the team. They’re always professional, deal with customers very fairly and ensure they’re offered the most effective solutions to meet their needs. I have no reservations in dealing with Bespoke and their abilities to provide suitable solutions for customers.
— Scott Campbell
Head of Barclays Business Sales
I have recommended Bespoke’s services to a number of our clients, both that have existing factoring facilities and also to clients who are looking at their financing options. The service provided has always been exceptional and the feedback from these clients has been nothing but praise. I would therefore highly recommend the Bespoke team.
— Tim Pearce
Managing Partner, Haines Watts
We contacted Bespoke as we were looking for an invoice finance facility to support the business due to our fast growth. They didn’t disappoint! They gave us first-class advice and support and within a week had provided us with a choice of competitive funding options. Bespoke worked with us through the decision process and helped us secure a finance facility which was ideal for our business and offers the flexibility for future growth. A-first class service throughout.
— Paul Davison
Director, Nutraformis
Contact us
Get in touch
Let’s work together
Please do not hesitate to get in touch. We look forward to hearing from you.