Tax credits

Businesses across all sectors that qualify as a company undertaking R&D within the UK can access the biggest single funding tax incentive provided by the Government - the R&D tax credits.

What are tax credits and how could they help your business?

The credits are made available to qualifying companies either as:

How can my company benefit from R&D tax credits?

ALL companies spending at least £10,000 in their accounting year are entitled to claim a deduction when calculating their taxable profits of:

150 per cent of qualifying expenditure for SMEs (increasing to 175 per cent in respect of expenditure incurred on or after 1 August 2008)
OR
125 per cent of qualifying expenditure for larger companies until 31 March 2008 and 130 per cent in respect of expenditure incurred on or after 1 April 2008, reducing the company’s UK corporation tax bill accordingly.

Read more about the SME scheme and the Vaccine Research Relief.

How do I know if my company is eligible?

The following definitions describe what is meant by R&D for tax purposes:

Find out more about eligibility.

Tax relief rates

SME R&D tax credits scheme (from 1 August 2008):

Find out more about R&D tax credits and how to claim.

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R&D tax credits

R&D tax credits

All companies spending at least £10,000 in their accounting year are entitled to claim a deduction when calculating their taxable profits.