GrantTree’s R&D Tax calculator can only estimate of how much you’re entitled to.
Calculating your exact claim size is fairly complicated as it depends on a range of variables, like when you incurred your costs and how large your company is. We’ve explained these variables below.
If you’d like a more precise understanding of your entitlement, give GrantTree a call. Our R&D Tax experts would be happy to help.
Fundamentally, the R&D Tax Relief scheme works by letting you reclaim a percentage of your qualifying development costs like wages and contractor fees.
These costs must be associated with qualifying activities undertaken as part of eligible projects. Costs that apply to both qualifying and routine (i.e. non-qualifying) activities – such as utilities – must be apportioned correctly.
Now for the tricky part. Or should we say the ‘trickier’ part? Identifying all eligible costs and bucketing them compliantly into the right projects is no cakewalk.
Depending on when you apply, you may have to file under any of four separate schemes:
Each scheme has different qualifying criteria and offers different rates of relief.
You’ll need to work out which scheme or combination of schemes your company can and should apply to to maximise its funding.
Here’s how much relief you can access from each scheme:
The last major consideration is your company’s financial position.
The various schemes that make up R&D Tax Relief offer different amounts of funding depending on whether your business is profitable, loss-making, or breaking even.
How profitable you are can also have an impact. The merged and old RDEC schemes offer a taxable cash credit. Your profitability will determine whether that credit is taxed at the main corporation tax rate or the small profits rate.
As you can see, calculating your exact entitlement and applying for the correct amount of relief takes a great deal of work.
Applying for the wrong amount has serious consequences: claiming for too little means your company misses out on valuable funding or tax relief; claiming too much is likely to land your company with a lengthy enquiry, delaying your windfall or wiping it out entirely.
If you want to get clarity on your claim size and make sure you’re claiming for the right amount, GrantTree’s R&D Tax experts are here to help. Just get in touch, and one of our team will be right with you.
Speak to one of GrantTree’s R&D Tax experts to find out how much your company
should claim.
Keep up to date with all things GrantTree. You will receive a newsletter once a month containing tailored news, insights and white papers.
We are GrantTree. And we are here to make innovating easier. Our specialists will connect you with the funding you need so you can focus on growing your business.
© Copyright. GrantTree. CN 07403467. VAT GB 101974824. All Rights Reserved.
