Research & Development

Research and Development 

Research and Development, many businesses are missing out on government money, the key questions are:


  • Have you developed a new product ? (i.e. a product that was not on the market    before, this can be a modification or a new product)
  • Are you working on a new idea? (i.e. the product / application is still being designed / developed).
  • Have you installed a new process? (i.e. have you thought of a better or new way to produce a product).
  • Are you working on a new process?

Note product can be a service, app, saleable commodity, any item that a person or business can use. It does not have be developed or produced in the UK, you have to be the owner of it.

Answer yes to ANY of the above then ring us NOW on 01842814625 or email us now to info@klienhayes.co.uk

Read and download our Newsletter leaflet on R&D HERE>>

We offer a no win no fee service why not contact us today to discuss this further.

Corporation Tax relief and R&D

R&D Relief is a Corporation Tax relief that may reduce your company or organisation’s tax bill. Alternatively, if your company or organisation is small or medium-sized, you may be able to choose to receive a tax credit instead, by way of a cash sum paid by HM Revenue and Customs (HMRC) But your company or organisation can only claim R&D Relief if it’s liable for Corporation Tax.

There are 2 schemes for claiming relief, depending on the size of the company or organisation:

  •     the Small or Medium-sized Enterprise (SME) Scheme
  •     the Large Company Scheme

Research and Development Expenditure Credit (RDEC) Scheme
The RDEC scheme has been introduced for expenditure incurred on or after 1 April 2013. It will initially be optional, running alongside the Large Company enhanced-deduction scheme which it will replace in April 2016.

Amount of expenditure
Relief is given as a taxable credit on the amount of qualifying R&D expenditure. The rules for identifying qualifying R&D activity and calculating R&D expenditure remain unchanged.

Rate of Relief
From 1 April 2015 relief is given at 11% of qualifying R&D expenditure.

What is an SME for R&D?
An SME is a company or organisation with fewer than 500 employees and either of the following:

  •     an annual turnover not exceeding €100 million
  •     a balance sheet not exceeding €86 million

This definition applies to spending on R&D from 1 August 2008. Before that date, an SME was a company with fewer than 250 employees, and either of the following:

  •     an annual turnover not exceeding €50 million
  •     a balance sheet not exceeding €43 million

Your company or organisation may not be considered to be an SME if it’s part of a larger enterprise that, taken as a whole, would fail these tests.
When you’re considering the limits shown above, you may need to include any company that has a shareholding of 25% in your company and/or any company your company holds a 25% share in.
If your company or organisation is claiming relief under the SME Scheme, for accounting periods ending before 9 December 2009, then it must own any intellectual property that might arise from the project.

This definition of an SME for R&D Relief purposes isn’t necessarily the same as that used by HMRC in relation to other areas of Corporation Tax or other tax areas such as PAYE, or by other government agencies.

Subcontractors
You can’t claim R&D Relief under the SME Scheme if you’re a subcontractor – that is, if you’ve been subcontracted to do the work on behalf of somebody else. But, even if your company is small or medium-sized, you may still be able to claim as a subcontractor under the Large Company Scheme.

Contact us today for a no win no fee claim we do all the work you take the claim, ring today for a confidential talk 01842814625 or email us on info@klienhayes.co.uk

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