20 Feb R&D tax relief scheme remains a valuable incentive for companies undertaking technical development
MIA Member R and D Tax Specialists has shared the following news article.
Latest figures show R&D tax relief scheme remains a valuable
incentive for companies undertaking technical development
Leading R&D tax relief advisors, R and D Tax Specialists Limited, have
produced latest figures on the financial benefits that companies can secure under the
government’s new merged R&D expenditure credit (RDEC), and enhanced R&D intensive
support (ERIS), schemes.
The latest R&D tax relief schemes, effective for accounting periods beginning on, or after,
1 April 2024, are now coming into play as companies with affected year ends begin to
progress their R&D tax relief claims.
Following a range of enhanced compliance measures, and changes to the R&D tax relief
scheme, introduced by HMRC over the past several years, the scheme remains a highly
attractive financial incentive for company’s engaged in qualifying development work. Under
the new merged R&D expenditure credit (RDEC) scheme, each £100,000 of qualifying R&D
spend will generate between £15,000 and £16,200 of tax relief, payable either as a cash
refund, or credit against corporation tax.
For companies that are R&D intensive, where more than 30% of their costs are expended on
R&D work, the claim value can be up to £27,000 for each £100,000 of qualifying R&D spend.
Garry Hague, Managing Director at R and D Tax Specialists, said: “Over recent years there
has been adverse publicity regarding the government’s R&D tax relief schemes. This has
centred on enhanced compliance measures taken by HMRC to address alleged fraud in the
scheme, and the introduction of seemingly less attractive benefits for claiming. The new
merged scheme and the ERIS scheme do represent fundamental changes to the R&D tax
relief regime. However, it is clear from the figures we have produced to show the benefits of
claiming under the new variants of the scheme, that it remains a highly attractive government
incentive for supporting business and increasing competitiveness. Companies undertaking
qualifying R&D should not be hesitant to claim.”
“We are happy to provide a no obligation assessment of a company’s viability for making a
successful claim, and we can also assist with all aspects of the work to compile and file the
required documentation to support a compliant claim. Please contact us on 01327 317947 /
[email protected]“
To find out more click here.