What are R&D tax credits?
R&D tax credits are a valuable incentive offered by the UK government to support companies involved in innovative projects within the fields of science and technology.
By engaging in R&D projects, companies can benefit either through a reduction in their tax liability or by receiving a cash refund.
By leveraging R&D tax credits, companies can use the financial support to drive innovation, explore new ideas, and ultimately contribute to the advancement of various industries. Prior to 1st April 2023, companies could claim a 130% uplift on their incurred R&D expenditure under the SME scheme. For periods after 1st April 2023, companies can now expect to receive an uplift of 86%.
Qualifying costs can include:
- Staffing (including salaries)
- Consumables
- Software
- Subcontractors
- Utilities
Who is eligible for R&D tax credits?
Hundreds of thousands of UK organisations are eligible to apply for SME R&D tax credits. You just have to:
- Be a limited company registered in the UK, with fewer than 500 employees and an annual turnover below £100 million (or a balance sheet below £86 million)
- Be involved in researching or developing new technology for a product or service – that isn’t copying another business, but involves genuine uncertainty of success.
Not sure whether your company is eligible?
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If your company is larger than an SME, you may be eligible for R&D expenditure credit (RDEC).
RDEC is designed for larger companies that do not meet the SME threshold, for example; if they have been in receipt of notified state aid such as Innovate UK and Smart Grants.
From 1st April 2023, companies can claim up to 20% of their eligible R&D expenditure as above the line credit. This can be used to offset outstanding corporation tax liability or lead to a payable credit (depending on a firm’s tax position).
Potential problems
You don’t have to use an agent to submit R&D tax credits; however, it is encouraged to partner with an expert in UK tax law who has in-depth understanding into R&D tax credits.
It is also important to note that HMRC has recently introduced additional criteria which must be satisfied before a claim can be submitted. If a claim is submitted incorrectly, it can face lengthy enquiries, and penalties.
At Grantify, we specialise in taking the guesswork and hassle out of applying for government funding yourself. We have an experienced panel of R&D Tax Credit Analysts equipped to see you through the entire process, even if you have no prior experience in applying for R&D tax credits.
How we can help you get R&D tax credits
Once completed, the final documentation is checked and amended versions of your CT600 and Tax Computations are prepared by our team of qualified in house accountants, with over 20 years’ experience.
Even more, our commission is based on a flat rate of 12.5% of the benefit you receive from HMRC. Plus, we’ll only take payment if your claim is successful.
The wealth of experience within the team means that we are the best place to maximise the value of your claim.
How it works
With Grantify, you get access to an online platform that takes you through your application step by step:
- First of all, it completes a thorough check to ensure that you’re eligible for R&D cash rebate
- Then it asks you some straightforward questions about your business and R&D work. You’ll only have to write a few hundred words, and we’ll provide model answers – plus precisely what to include to maximise your success
- Finally, it’ll give you a costing worksheet that does all the tax calculations on your behalf, avoiding any costly errors. All you have to do is enter your expenses.
Once your application is complete, our team of expert accountants will thoroughly review it. Then, we’ll submit the claim on your behalf – so you don’t have to waste time dealing with HMRC.
Find out if you qualify
Grantify R&D Success Stories
We’ve helped our clients claim back £3.2m in 2022 alone.
Grantify's customers submit their application 7X quicker than applying solo
“We have received our tax credits into the company bank account over the weekend. I would like to thank the team at Grantify for the superb work that you undertook on our behalf. It’s not every day that a company lives up to every word it says, but on this occasion, you certainly have done just that. I would not hesitate to recommend Grantify to others.” – XPERMIT
“We used Grantify for our R&D tax credits application. All I can say is I wish I had found out about them earlier! Mat and his team were helpful and knowledgeable and made the process very quick and easy. The chances are, like us, you could be leaving thousands of pounds on the table which could be used to help develop your business in these challenging times. We will be using Grantify in the future and look forward to watching their business grow.” – Secret Sessions
