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Are you one of the 97% of SMEs missing out?


Posted on 26 February 2013

Research & Development Relief (RDR) is a Corporation Tax claim made annually that may reduce your company’s tax bill or indeed produce cashflow for your business.

The RDR scheme has been designed to encourage greater R&D spending and based on recently published figures only 3% of eligible SMEs in the UK are taking advantage of this tax relief.


Why aren’t companies claiming?

Many businesses, particularly SMEs, are failing to capitalise on the full tax benefits of R&D. This is due to a number of factors including:

  • a lack of awareness of the tax reliefs
  • a lack of understanding of how it works and how to claim
  • poor professional advice
  • jumping to an incorrect assumption that you won’t qualify!


Surprising but true...some real examples

Company A who provide equipment for racing events recently had to make changes to their existing equipment to meet the specific needs of a race. This tailored service is something they have offered clients for a long time now and so, didn’t consider the alterations to the equipment to be R&D.

However, by putting an RDR claim through, Company A received £12,000 of their tax back!

Company B who run an online shopping service selling DIY and home products have made some changes to their payment platform which having conducted an initial assessment, has enabled a claim for a tax credit.


Next steps?

Our tax experts make the entire process of securing RDR achievable and simple for our clients. Our comprehensive service starts with an initial assessment determining which of your R&D activities qualify for the scheme. We then gather and draft your claim and submit this to HMRC.

If you think you might be able to submit a claim, or would like just to chat it through, then please contact your partner or one of the SC Tax Advisory specialists by clicking on their name below:


Richard Stanley - Tax Partner

Clare Beachell - Tax Partner

Edward Saunders - Tax Director


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