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How Many R&D Tax Credits. Rebates & Refunds Can I Claim In 2024

How Much R&D Tax Credit Can A Business Claim?

Understanding how much Research and Development (R&D) tax relief you can claim is crucial for businesses. This guide provides an overview of how much R&D claims can be made for HM Revenue & Customs (HMRC) in 2024.

The amount of Research and Development (R&D) tax credits you can claim depends on various factors, including your business category and the scale of your R&D activity and costs.

Here are examples for different types of businesses and the rates of relief that apply:

Profitable SME (Small and Medium Enterprise):

In addition to the tax relief generated from your company’s eligible R&D expenditure as part of its operational costs, you can deduct a further 86% from the yearly profit.

With an R&D tax credit incentive of up to 21.5%, if your SME spent £500,000 per year on R&D, you could potentially claim back up to £107,500 as a tax refund or reduced tax liability.

Loss-making SME:

Loss-making SMEs can claim a payable credit.

With an R&D tax credit incentive of up to 18.6%, if a company spent £500,000 per year on R&D, it could potentially claim back up to £93,000.

Loss-making, R&D Intensive SME:

To be considered R&D intensive, at least 40% of a company’s total expenditure must be spent on research and development.

Businesses in this category are eligible for an R&D tax credit incentive of up to 27%.

If you spent £500,000 per year on R&D, you could potentially claim back up to £135,000.

Large Company (under the RDEC scheme):

The R&D Expenditure Credit (RDEC) scheme offers a tax credit of 20%.

Companies can claim back up to 20p for every £1 spent on qualifying R&D activities.

Whether the company is making a profit or loss is immaterial.

If a company spent £500,000 per year on R&D, it could potentially claim back up to £100,000.

It’s important to note that these examples provide a general overview, and the specific details of your claim may vary. Consulting with a tax professional or R&D tax specialist can help you determine the exact amount you’re eligible to claim based on your unique circumstances and R&D activities.

R&D Tax Credit Specialists – Claim HMRC Tax Breaks, Rebates & Refunds

UK R&D Tax Credit Specialists

Claiming R&D tax credits isn’t just a paperwork drill – it’s a pathway to reducing taxable income and enhancing your cash flow. Our specialists guide you through the complete process of claiming R&D tax credits on your business expenses.

We ensure your claim complies with all HMRC guidelines to maximise your returns and provide the financial boost your company deserves.

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Claim your R&D tax breaks, rebates, and refunds with a dedicated team that understands the intricacies and delivers results. Your journey to unlocking the full potential of your R&D expenses starts here.

R&D Tax Claims – HMRC Tax Refunds & Rebates
R&D Tax Credits –  Additional Information & News


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