Research & Development
Research and Development (R&D) Tax Relief is a valuable government incentive to reward UK limited companies for investing in innovation.
It covers activities that develop new products and procedures or with a focus on improving existing ones.
R&D can take place in any sector, from a domestic cleaning company to a large motor company, and is not necessarily about scientists in white coats! R&D Tax Relief can be a valuable source of funding for many businesses, with the average claim for an SME estimated at over £46,000.
Could you benefit from R&D tax incentives?
To benefit you need to meet the following criteria:
- You must be a UK limited company that is subject to Corporation Tax
- Have carried our qualifying research and development activities
- Have spent money on these projects
In the UK, SMEs claim an average of £57,228 (2018-19). Large companies can claim up to 11p for every £1 spent on qualifying R&D activities. In the UK, the average claim for large companies (RDEC) is £632,931.
What to expect
Are you investing in new products, services, or processes?
Are you employing staff in a variety of roles?
Are you spending money on: Sub contractors, freelancers, staff salaries, pension contributions, materials, heat, light and power that is used in the R&D process?
Then we think you could be eligible!
How it works
R&D tax relief is available to companies who invest in developing new products, processes, or services; or enhancing existing ones. By claiming an R&D tax credit, you can either receive a cash payment or a reduction in Corporation Tax.
The scope for identifying R&D is huge! If you are making a claim for the first time, you can typically claim R&D tax relief for your last two completed accounting periods.
What to expect
Following an initial conversation, if we think there is a potential claim, you can expect to follow this process:
1) The Plan
An initial meeting will be scheduled where we can clearly explain the planning and data gathering process, define roles and responsibilities and agree time scales.
2) On site visit
The most important step in the process. This allows our industry expert to clearly explain the qualifying criteria, and work with you quickly to identify your products, processes and services that meet HMRC’s criteria and what needs to be collected ahead of a report generation.
3) Numbers & Narrative
We use the information we have gathered to draft a technical report that meets HMRC’s guidelines. All reports will be agreed with you before submitting them to HMRC.
4) The Submission
We then submit the final claim report to HMRC and ensure you are kept fully up-to-date as the claim process proceeds.
Find out If your Business Qualifies for R&D Relief
We don’t charge until your claim is processed!
We work in partnership with our sister company, Templeton R&D Ltd, to assist businesses with their claims and combining technical expertise with Tax expertise.
We understand business and we know that your main focus is on growing your business, developing new and improved products and finding new customers.
Our highly successful process is tailored to your needs depending on your size, industry sector and structure. From new start-ups to multi-national groups, we’ve assisted companies across all sectors to submit successful claims.
Don’t Just Take Our Word For It
They have always treated us like friends, rather than clients, and that personal touch works extremely well for us.
“Ormerod Rutter has, and still does, unquestionably, provided impeccable service to our family business, DNB roofing LTD, for the last six years. The continuity of encouragement and support provided from the very first day to present, has been outstanding and they have successfully guided the business through not only the highs, but throughout the lows, especially the pandemic. They have always treated us like friends, rather than clients, and that personal touch works extremely well for us. We are so very grateful to them all at OR and could not recommend them enough.”
– Dan, Managing Director of DNB Roofing LTD
Talk to our Key Contact
Jo Bennett
R&D Specialist
To learn more about the Ormerod Rutter Research & Development service, and obtain a no obligation quote please get in touch.
01905 777 600
Latest News, Insights & Downloads
Understanding State Pension Deferral
Most people claim their State Pension as soon as they reach State Pension age. But it isn't your...
Change to financial reporting standards causes tax fall-out
Businesses impacted by change to the main financial reporting standard, FRS 102, should be alert...
Inheritance Tax exemptions
With the extension of Inheritance Tax (IHT) to most unused pension funds and pension death...
Inheritance Tax on Pensions: What the April 2027 changes mean for you
For decades, pensions have sat outside the estate for Inheritance Tax (IHT) purposes, making them...
Gain access to download our guides written by our expert team
Sign up to our newsletter
Be the first to know about our upcoming webinars, free events, guides and latest updates.
Ready to start a conversation?
Book a free consultation
Head Office
The Oakley
Kidderminster Road
Droitwich
WR9 9AY
01905 777600
Bromsgrove Office
Regency House
48 Birmingham Road
Bromsgrove
B61 0DD
01527 889800
Birmingham Office
Lancaster House
67 Newhall Street
Birmingham
B3 1NQ
01905 777600
