An existing client recently recent reached out to us and asked for assistance in developing leads for the governments R & D Tax Credit scheme.

Having fully researched the market, we estimated the monthly search volume to be approximately 6000 uniques per month.

The competitors websites were long standing, nevertheless upon further due diligence, we were confident we could dominate this niche and so the work began.

What is R & D?

R & D stands for Research and Development. It refers to innovative activities undertaken by companies or governments in developing new services or products. It also encompasses the improvement of existing services or products.

The general thought is that employees need to be wearing lab coats to qualify, but thats not the case.

The Research & Development Tax Credit

The R&D Tax Credit scheme is a general business tax credit for companies that incur R&D expenses in the United Kingdom. It is a very generous relief which rewards companies for their investment into innovation.

The R&D Tax Credit scheme has been around since 2000 and last year over 25,000 companies in the UK claimed almost £2.9 billion in tax relief.

Unfortunately Only Limited Companies qualify for R&D tax relief. It can reduce tax bills or can allow claimants cash credits as a proportion of the R & D expenditure.

Who Qualifies for R & D Tax Relief?

Eligible companies include:

To qualify for the research tax credit, businesses must have:

Companies must have incurred costs in any of the following:

It should be noted that capital expenditure does not qualify under this scheme.

Most companies which even includes start-ups can claim back circa 33p for every pound spent on R&D.  In addition to this, they can also receive a cash benefit, even if their business is not making money.

The average claim in the UK for the 2015/2016 tax year made by SMEs was £61,514.

Eligible R&D Activities:

There are three types of R&D situations supported by the R&D tax credit program. They are classified as follows: