Reasearch & Development Tax Relief & Tax Credits
HMRC enquiries into Research & Developments (R&D) claims are on the rise
Knowledge Base
Where we share our
in-house expertise
directly with you
R&D (research and development) tax relief is available to companies carrying out qualifying research and development activities. Friend Partnership has substantial experience and a 100% success rate of helping companies to successfully claim R&D tax relief
R&D Tax Relief Services
The main features of R&D tax relief are:
- The company must be carrying out R&D activities, as defined
- There are different regimes for large and small/medium sized companies
- Enhanced corporation tax deduction of up to 230% of revenue expenditure on R&D for SMEs
- 100% capital allowances for any R&D capital expenditure
- There is an above the line approach for large companies
- Only certain costs qualify for relief
- Payable credit of 14.5% of any R&D tax losses which are surrendered for SMEs
The company must be carrying out R&D activities, as defined
There are different regimes for large and small/medium sized companies
Enhanced corporation tax deduction of up to 230% of revenue expenditure on R&D for SMEs
Payable credit of 14.5% of any R&D tax losses which are surrendered for SMEs
100% capital allowances for any R&D capital expenditure
There is an above the line approach for large companies
Only certain costs qualify for relief
The main features of R&D tax relief are:
- Identify qualifying activities
- Identify qualifying costs
- Deal with HMRC enquiries
- Maximise your claim(s)
- Secure tax payments from HM Revenue & Customs (HMRC)
Identify qualifying activities
Identify qualifying costs
Deal with HMRC enquiries
Maximise your claim(s)
Secure tax payments from HM Revenue & Customs (HMRC)
HMRC have a specific R&D task force
In March 2021, HMRC proudly announced the creation of their R&D task force. Its job is to undertake enquiries into R&D claims that companies have made to ensure that they are not fraudulent or incorrect.
HMRC knows that there have been “abusive R&D claims” either as a result of negligence or dishonesty. HMRC’s estimate of the loss due to incorrect or fraudulent claims tops £600 million – and they want it back.
My claim has been accepted, so I’m in the clear, right?
HMRC operates a “process now, check later” approach to claims. Unfortunately, we are now very much in the checking phase and due to increases in their R&D investigation manpower the number of investigations is on the increase.
What’s the worst that can happen?
Excessive or incorrect claims will be disallowed. Repayment of any tax refunds will be sort, along with a penalty which in extreme cases could be equivalent to 100% of the tax at stake.
You need expert advice and assistance in these situations
Friend Partnership have been dealing with R&D tax credits for over 20 years, since their introduction back in 2000. We have gained a detailed understanding of the R&D tax credit system. This depth of knowledge and experience, coupled with our successful track record defending clients from HMRC enquiries in all areas of tax and accounting, makes us worthy of an hour or so of your time for a no obligation chat about your current situation.
