It is given as a taxable credit on the amount of qualifying R&D expenditure payable as cash or as an offset against the company’s corporation tax liabilities.
A company can claim RDEC going back two full financial years.
R&D for Tax purposes does not necessarily mean blue-sky research which is a common misconception that can prevent companies from receiving the benefits from HMRC that they are entitled to.
RDEC allows the benefit of R&D to be accounted for within the Profit and Loss (P&L) account, above profit before tax, rather than only through the tax account. So, under the RDEC scheme, large companies who are loss making are now able to benefit from their development efforts for the first time, by way of an immediate net of tax cash credit, which is tax exempt.
The RDEC also enhances the company’s earnings before interest and taxes (EBIT), therefore ends up being more lucrative for larger companies.
The scheme is now a straightforward subsidy against the level of R&D spend that your company incurs.
Irrespective of what industry or sector you are, GovGrant can help you identify eligible activities for R&D for tax purposes. We have a well-established, strong relationship with HMRC and, because we prepare R&D claims daily, GovGrant are always on top of the latest changes in legislation. You can rely on our expertise, leaving you to focus on your main business.
Get in touch with our RDEC specialist account managers.
We are not another accountancy firm. Here at GovGrant we assess your R&D activities by walking the floors and asking you the right questions to truly maximise your R&D claim.
As one of the oldest established R&D tax credit specialists in the UK, we have a wide presence nationally with industry experts such as engineers, scientists and IT specialists alongside qualified tax professionals who understand your business and can develop a robust R&D Claim on your behalf.
GovGrant have a proven track record with HMRC and a well-established claim methodology giving us a 100% success rate.
Our one and only business focus is to offer our clients the maximum potential benefit from the innovation incentives available in the UK for you to grow and expand your business.
The best way to predict the future is to invent it.