Categories

So how much can I get?

Pocket


R&D Tax credits is a great government funding scheme – one of the most reliable that the UK government puts out. If your business does anything that sounds like it might be R&D (i.e., involves resolving “technical uncertainties” by developing new tech stuff, software, hardware, biotech or otherwise), then you should definitely look into this and collect your R&D tax credits.

The exact calculations can get very complicated, but here’s a simple thumb rule: as an SME, you can recover about 15-30% of what you’ve spent on R&D. If most of the spend was on subcontractors, it’ll be closer to 15%. If most of it was on directly employed staff, it will be closer to 30%. Your exact profit or loss figure, and other factors, will also impact the amount, but as a thumb rule, 15-30% of your developers/researchers’ salaries is what you’ll be able to get back.

If you’re a large company, it’s even simpler, but less lucrative. You’ll be able to get back about 9% of your costs.

So how do I get it?

The R&D Tax Credit filing is via something called a CT600 – a Corporation Tax Return. You need to calculate the exact figures to fill in the right boxes, and also to write a clear “technical narrative” that explains why your project qualified, and produce a calculations table that shows how you worked out the figures. Bear in mind also that HMRC may query the figures or the narrative, so you should make sure you read up on the regulations on HMRC’s site, or, even better, on our resource at https://granttree.co.uk/tax_credits.

Or, just spend one to two hours with us and we’ll do all the work for you, no hassle!

What’s the catch?

Strangely enough, there isn’t one. The UK government has put this scheme in place (which was already successfully applied in Canada for a solid decade) because it recognises that most growth comes from innovative companies, and most innovative companies become so by doing R&D, and so it wants to further incentivise companies to invest more in R&D.

If you are curious about R&D Tax Credits, Innovation Grants and Open Culture

GET IN TOUCH

ABOUT THIS AUTHOR
GrantTree








LATEST ARTICLES



Should we pay for Facebook?

Giving Facebook money is probably the last thing any of us want to do at the moment. The recent Cambridge Analytica scandal brought to a head many of our nagging…
Read More

Categories

TWITTER

 
GrantTree  GrantTree,Jul 20
Would you trust your voice as a diagnostic tool? https://t.co/pNwizQhEnd 
GrantTree  GrantTree,Jul 19
Four common mistakes when applying for #RandD #taxcredits Find out more: https://t.co/JwBGR9f6hE https://t.co/lZszs03DuW 
GrantTree  GrantTree,Jul 18
RT @BoostInfo:Are you considering raising money but don’t know where to start? Show me the money Manchester! Free event tomorro… https://t.co/3X7JOgp8tH 
GrantTree  GrantTree,Jul 18
In the age of #Trump and #Brexit, does online activism actually work? Read on: https://t.co/E2BvLeaEJh https://t.co/Yt7ru6WqWw 
GrantTree  GrantTree,Jul 17
Can you guess the tech companies? #WorldEmojiDay 1. 😊📘 2. 🅰️🐩(- g)🐝 3. 🐦 4. 🍏 5. 💨 🐝🖐️🅱️