Research and Development Relief | Tax Relief Opportunity
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R&D Relief

The Research and Development (R&D) tax relief is an area that is often overlooked by UK companies and their advisors. R&D is designed to encourage innovation and increase spending on R&D activities for companies operating in the UK. Across the UK many business are missing out on thousands of pounds they are entitled to by not submitting an R&D claim.

How does R&D work?

The R&D scheme is a tremendously generous tax relief which can secure substantial tax repayments, even for loss making companies which have paid no corporation tax. If a company performs any activities that fall within the definition of research and development, they would be entitled to claim the R&D tax credits.

SME businesses can claim up to 33p for every £1 spent on R&D qualifying activity.  R&D tax relief is one of the UK’s most generous tax reliefs yet due to the misconceptions surrounding what activities qualify many companies don’t even consider claiming, and others have not even heard of the scheme.

Need R&D Relief?

For comprehensive R&D Relief

What does R&D Relief cover?

Research & Development Relief

SME businesses can claim up to 33p for every £1 spent on R&D qualifying activity.

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A dedicated team to Technology businesses

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Find out if you can make a claim

We partner with the R&D technical experts at Markel Tax to provide the Jensten R&D service. They can assist you in identifying the qualifying activities across your business and your eligibility to make a successful R&D claim.

Markel Tax is one of the UK’s leading independent specialist tax and funding consultancy firms to the accountancy profession and it’s this unwavering reputation that makes them our trusted tax partner.

To qualify for R&D tax relief, your company must be:

  1. Making an appreciable improvement to existing technology.  This does not necessarily mean ground breaking, innovative, or novel work. If companies are aiming to make their products or process cheaper, faster, smaller, or better in some way, then this may qualify as R&D.
  2. Overcoming technological uncertainties or challenges, especially if the solution will not be immediately obvious to a qualified professional. The company may need to go through a “trial and error” process to achieve the required solution.

R&D often occurs within day to day business activities where companies are improving, developing or manufacturing products, services or internal processes which aim to maintain a competitive and commercial advantage.

Key considerations

A commonly overlooked opportunity is where a client incurs a significant spend to improve their internal efficiencies and reporting. In many cases off the shelf products don’t have the capabilities to provide end to end solutions. Companies are often required to develop solutions in areas such as stock management systems, time management software and tracking solutions.

In addition, any off the shelf solutions usually need integration with existing systems therefore project costs are incurred to modify the solution in order to meet the company’s functionality requirements.

Success does not have to be a requirement to qualify for R&D Tax relief. If you have tried and tested projects in the past that have failed, they can still qualify for R&D tax relief.

For some tailored insurance help, please contact the Jensten Motor Trade team today or call them on 0208 298 2100.

Need R&D Relief?

For comprehensive R&D Relief

R&D Relief

To qualify for R&D tax relief, your company must be:

  1. Making an appreciable improvement to existing technology.  This does not necessarily mean ground breaking, innovative, or novel work. If companies are aiming to make their products or process cheaper, faster, smaller, or better in some way, then this may qualify as R&D.
  2. Overcoming technological uncertainties or challenges, especially if the solution will not be immediately obvious to a qualified professional. The company may need to go through a “trial and error” process to achieve the required solution.

R&D often occurs within day to day business activities where companies are improving, developing or manufacturing products, services or internal processes which aim to maintain a competitive and commercial advantage.