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R&D tax relief

R&D tax credits

In the UK companies are able to claim tax relief for their R&D activity. This government scheme is designed to boost innovation by supporting businesses who seek to improve or overcome challenges or uncertainties in their products and processes. The scheme is administered by HMRC.

Large or small – there’s a R&D tax solution for your company

You are classed as a small or medium sized enterprise (SME): for the purposes of R&D tax incentives if you employ less than 500 employees and have either an annual turnover under €100 million or a balance sheet under €86 million.

R&D tax relief
Get up to 33% back

Typically SMEs get back up to 33% of the amount they’ve spent on qualifying R&D. We know what HMRC are looking for, so we can ensure your claim is accurate.

You are classed as a large company for the purposes of R&D tax incentives if you employ more than 500 staff or you have a turnover of more than €100 million and more than €86 million in gross assets.

Large company
more than 10% back

Large companies could get more than 10% of their R&D spending refunded through RDEC, the Large Company Research & Development Expenditure Credit.

More about RDEC

Do you think you could be eligible?

Ask yourself:

  • Do you design and make new products?
  • Do you seek to improve processes, services, materials or devices?
  • Do you make prototypes or perform testing?
  • Do you develop software or IT solutions?
  • Have you invested in failed projects or developed products that are never launched?
  • Do you employ any staff with a technical or scientific background?

95% of the
SME companies
we meet
will qualify for the
R&D tax relief

And even if you’ve made a claim already

We maximise claims through an expert led, detailed assessment of your activities. There is usually a very good chance we will improve them.

On average, we have increased existing claims by 200%, because we know how to find the full potential of your claim.

Find out more about how we could help you increase your claim.

Find out more about R&D tax relief in your sector

Our experts are business people first and GovGrant has access to a full range of industry experts across the country. Examples of how R&D tax relief applies in different industry sectors are outlined below:

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Artificial intelligence and robotics icon

Artificial intelligence and robotics

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Innovation Life Cycle

Our understanding of the innovation Life Cycle of a project helps drive the outcomes of the claims process.

GovGrant innovation life cycle. Patent Box and R&D

Making a successful R&D tax relief claim

Whether your business is big or small, complex or simple, single or multi-site. We match you with an industry, commercial or technical expert that best suits your business. GovGrant works alongside your accountant to complement their skills so there is no conflict. As part of our discussions we can advise you on the process of patenting your innovations.

GovGrant has an HMRC enquiry rate of less than 0.2% Industry wide HMRC enquiry rate is 14%

Making a claim – getting it right

We know what HMRC are looking for, so we can ensure your claim is accurate and complete – which gives you the best chance of having your claim approved. We manage your claim from start to finish. The aim is to minimise the impact on your day to day operations – simply put, we will do the work and you will get the benefit. And of course stand by our claims, if you face an HMRC enquiry we defend it free of charge and run that process on your behalf at no extra charge. GovGrant has an enquiry rate of less than 0.2%, compared to the industry wide rate of 14%.No wonder we are confident in delivering for our clients.

What is RDEC?

The Research and Development Expenditure Credit (RDEC) scheme was introduced for large companies on 1 April 2013 as a 10% benefit, increased to 12% from 1 January 2018. And from 1 April 2020 it increased again to 13%.

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.

What does it mean for you?

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.

Why it feels different when you work with GovGrant

Our one and only goal is to get you the maximum benefit you deserve for innovating in the UK. When you meet our specialist, it will feel like you’re talking to a colleague rather than your advisor.

We don’t start with your balance sheet. We start by walking the floors and understanding the things you do and the things you make.

There is no conflict of interest. As this is all we do our advice will never conflict with other tax or audit advice you receive.

You are paying for our expertise (not to support a large corporate infrastructure). Experience tells us that when other firms prepare a claim that they leave some of the value off the table. Even the biggest names.

On average, we see an uplift of 200% over what companies have claimed themselves or using another adviser.

We are not the Big 4 ,and we are proud of it. We are the challenger and the better pair of hands. Innovation is about pushing the boundaries and embracing uncertainty to gain advancement.

and figures

Over 300,000 R&D tax claims have been made*

£26.9 billion in R&D tax relief claimed*

The average claim under the SME scheme so far in 2017-18 is £53,713*

The average claim under the RDEC scheme so far in 2017-18 is £600,977*

GovGrant has successfully processed over 6,800 claims

We have delivered over £200m of claim benefit for our clients

The best way to predict the future is to invent it.

Alan Kay