RD Relief
The SME R&D Tax Credits Regime
The software underpinning RDRelief was sold to one of the big-4 professional service firms in 2018. Consequently, the brand is no longer in operation.
- R&D Tax Advisors are invited to find out more about the Inspired.tax claim preparation software.
- Otherwise, please feel free to continue to browse this website for useful information regarding claiming R&D Tax Credits in the UK. However, beware that none of the information has been updated since 2018.
Background
The SME (Small and Medium Enterprise) R&D Tax Credits regime is a UK tax incentive to incentivise small and medium-sized enterprises for undertaking qualifying R&D activities.
Qualifying Criteria
Main article: SME or Large
For a company to be eligible for the SME Tax Credits Regime, the company needs to:
- Have fewer than 500 staff and either less than a €100M turnover or €86M of gross assets.
- Be undertaking eligible R&D project/s, that is revenue in nature for tax purposes.
- Not be subcontracted or funded for the specific qualifying expenditure being claimed.
SME Regime Benefit
The benefit of the SME regime depends on a number of factors, including whether the company is profit making or loss-making. Essentially profit-making companies can benefit from a 230% deduction from annual profits (including the normal 100% deduction). Loss-making companies can claim a payable tax credit of 14.5% of the surrenderable loss.