How we calculate your potential R&D Tax Relief claim size

Three things decide how much R&D Tax Relief you can claim:

1. The size of your total qualifying expenditure

R&D Tax Relief works by reimbursing you a percentage of your expenditure on qualifying costs like wages and raw materials. So, the higher your total qualifying expenditure, the higher your tax relief or cash credit.

2. Which of the two schemes your company applies to

R&D Tax Relief is made up of two schemes: SME R&D Tax Relief and the Research and Development Expenditure Credit (RDEC).

Currently, under the SME scheme, you can reclaim up to 33.35% of your total eligible expenditure.

Under the RDEC scheme, you can reclaim up to 10.5%. How much relief you’ll receive through the SME scheme depends on your financial situation. RDEC relief rates are not affected by your financial situation.

3. Your company’s financial situation

Loss-making companies can claim up to 33.35% of their costs back through the SME scheme.

Profitable companies can reclaim up to 24.7%, while companies breaking even can only reclaim 18.85%.

Note: These rates are changing on 1 April 2023. To find out more, check out our comprehensive blog.

Get clarity on your claim size

If you want to know exactly how much R&D Tax Relief your company is entitled to, the easiest way is to speak to a specialist like GrantTree. Our R&D Tax Relief experts are standing by to help. Just get in touch.