Blackman Terry Article on Research & Development Tax Credits

Published: 20 Nov 2019

What Are Research & Development (R&D) Tax Credits?
R&D tax credits enable SME companies that incur costs in developing new products, processes or services to receive a cash payment or tax deduction.

This checklist will help you see if you are eligible: 

  • I have a limited company based in the UK
  • I employ less than 500 people
  • My turnover is less than £85 million a year
  • I’m working on something new and different and think my competitors would use it if they could

Where an SME incurs expenditure of £100,000 on qualifying R&D, it can deduct £230,000 when calculating its taxable profit, or loss, for corporation tax purposes. As the £100,000 would already be accounted for in its accounts, the balance of £130,000 would be an additional deduction from its taxable profit and the corporation tax saving would be £26,000 (at a corporation tax rate of 20%). The equivalent of the company receiving 26p from HMRC for every £1 they spent on R&D activities.

Blackman Terry has had great success with claiming R&D tax credits.  One client told us they “were thrilled and surprised with the size of the cheque they received from HMRC”.

If you would like to discuss this further, please email or call Blackman Terry Accountants – enquiries@blackmanterry.co.uk / 01444 882381.  www.blackmanterry.co.uk

About us

Our mission is to help you grow & evolve as a business.
That also means supporting local business growth & providing a united voice in the Gatwick Diamond.
We're aiming for excellence.
Our method is proactive & determined.
Our approach? Personal & engaging.

Get in touch

Tel: 01293 440088

Membership enquiries, new and existing:
mandi@gatwickdiamondbusiness.com

Event information and booking:
events@gatwickdiamondbusiness.com

To ensure we give you the best experience on our website we use Cookies. You can change your cookie settings at any time. However, if you continue without changing your settings we will presume you are happy to receive all cookies on the gdb website. Continue