Research & Development Tax Credits
What are they?
Research and development (R&D) helps
companies improve profits and grow by creating new high value-added
products, processes and services. R&D tax credits help
companies to invest more in R&D. The tax credit can either
reduce a company's tax bill or, for some small or medium sized
companies (SMEs) not in profit, provide a cash sum.
Who are they for?
R&D tax credits are available to companies
throughout the UK who are "working to resolve scientific or
technological uncertainty aimed at achieving an advance in science
or technology". Advances include new or improved products,
processes and services. Companies must have spent at least £10,000
in the accounting period on qualifying R&D to qualify for the
tax credit. There is no upper limit.
How to access
A company claims R&D tax credits in its company tax return
(Form CT600). Full details of the R&D tax credits legislation,
including how to claim, are available on the HM Revenue and Customs
website.