Research and Development (R&D)

The Government introduced R&D tax relief to help companies who invest time and money in technological and scientific advances. Sheen Stickland LLP offers expert advice in respect of all areas of the R&D legislation tailored to your specific requirements.

Overview of R&D

R&D enables companies who undertake R&D activities to obtain tax relief in excess of 100% of expenditure against their corporation tax or, in certain circumstances, claim a cash payment. It is available to all companies and for R&D activities across a wide range of sciences and technologies.

There are two schemes, the SME scheme and the Large Company scheme which have a number of different qualifying conditions and rates of tax relief.

SME Scheme

For SME’s the rates are becoming more generous with qualifying expenditure attracting total tax relief of 225% from 1 April 2012. If a SME is not paying corporation tax there is the ability to claim cash back from HMRC.

Large Company Scheme

Up to 31 March 2013 large schemes attracted tax relief of 130% of the qualifying R&D expenditure with no ability to claim the cash payment from HMRC.

However, the 2013 Budget introduced an ‘Above the Line’ (ATL) credit at a rate of 10% for expenditure incurred after 1 April 2013 to provide greater support for large companies. The ATL scheme is initially optional and companies will be required to make an election to use the scheme.

The legislation and practice in this area is complex and a number of companies remain unsure of their eligibility for R&D tax relief. With many traps for the unwary, a surprisingly high number of tax claims are rejected because they are submitted by accountants who don’t have an in-depth understanding of this specialist area.

Why choose us?

Sheen Stickland has first hand experience in guiding clients through the R&D legislation and can help you:-

  • Identify all activities that could qualify,
  • Ensure that the submission is accurate and all eligible work is included,
  • In corresponding with HMRC to get claims agreed so that you receive the highest level of tax relief that you are entitled to.

If you would like to discuss R&D in more detail please contact either Harriet Sergeant or Colin Matthissen.

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