R&D is the abbreviation for Research & Development and is something that takes place across UK businesses, often as a matter of course and some businesses wouldn’t necessarily even realise they are doing it. In 2000, the UK introduced the R&D tax credits scheme which allows companies the opportunity to offset their corporation tax against Research & Development expenditure and if you’ve never claimed before, there could be an opportunity to get a tax refund, providing cash to benefit your business.
The main purpose of the scheme is to encourage innovation, increase the quality and quantity of R&D in the UK and inward investment to the UK. The scheme includes SME businesses and Large companies, with potentially significant rewards on offer for many businesses.
In order to qualify for R&D tax relief you need to demonstrate how a project:
- Looked for an advance in science and technology
- Had to overcome uncertainty
- Tried to overcome this uncertainty
- Could not be easily worked out by a professional in the field