Qualifying SMEs can claim tax relief of 230% on eligible R&D spend.
This means that for every £100 spend on qualifying costs, you can deduct an additional £130 when calculating profits for corporation tax.
Your relief claim will be determined by your corporation tax liability and whether you are profit or loss-making:
If the Company is making a Profit – then one can deduct 230% of eligible R&D expenditure from taxable profits in the relevant period.
Alternatively, if the company is Loss-making – the company can make a claim to surrender the 230% and receive a refund. The value of this refund is at 14.5% of the value of the claim.
ETC Tax are experienced in handling client’s claims from start to finish. Get in touch if you have any queries.
