Accounting News – Autumn 2022

R&D Tax Credits: Are You Missing Out?

Research and Development (R&D) tax relief is one of the most generous schemes available to UK businesses, yet thousands miss out every year because they don’t realise they qualify.

What counts as R&D?

R&D isn’t just lab coats and test tubes—it can include:

• Developing new products or services.
• Improving existing processes to make them faster, cheaper, or more reliable.
• Overcoming technical or scientific challenges in your industry.

Who can claim?

• SMEs: Can claim up to 33p for every £1 spent on qualifying activities through enhanced deductions.
• Large companies: Can claim via the Research and Development Expenditure Credit (RDEC).

Qualifying costs

• Staff costs (including NICs and pensions).
• Subcontractor and freelancer costs.
• Materials and software used in R&D projects.

Common misconceptions

• “We don’t have a lab.” – Not required.
• “We’re in a traditional industry.” – Construction, manufacturing, and even food businesses can qualify.
• “It’s too complex.” – With the right guidance, the process can be straightforward.

👉 Takeaway: If your business is trying to solve technical problems, you may well qualify for R&D tax credits.

📞 Want to check if you’re eligible? Speak to our team today—we can help you prepare a strong claim and ensure you don’t miss out on valuable relief.