R&D Tax Relief Scheme

ERB can assist with the preparation and submission off R & D tax claims based on your business’s research and development needs. R&D relief allows companies that incur in qualifying R&D expenses, to claim a reduction to a corporation tax charge or claim a payable tax credit. This additional claim is calculated based on the level of qualifying R&D expenditure. The way in which this works, is that research and development expenditure is analysed and qualifying expenditure given an additional 130% relief. The additional 130% relief can be used to either reduce profits, and therefore reduce a company’s corporation tax liability, or increase the surrenderable losses available for a tax credit. If the company has a loss, a claim to surrender the loss in exchange for a 14.5% tax credit is available to the company, at the lower of the 230% of qualifying expenditure, or the surrenderable loss incurred during the year in question. If a tax credit is claimed, the loss will be ‘surrendered’ to HMRC and it will not be available to be carry forward to offset against future profits.

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