federal

How To Claim R&D Tax Relief in the United Kingdom

The United Kingdom offers a highly advantageous Research and Development tax relief through its merged Research and Development Expenditure Credit scheme. Businesses can receive a taxable credit at a rate of 20% on qualifying Research and Development expenditure. For loss-making, Research and Development-intensive small and medium-sized enterprises, the scheme is even more favourable, allowing a payable cash credit of up to 27 pence for every pound spent. To apply, companies must submit an Additional Information Form to HM Revenue and Customs before filing their Corporation Tax return. This relief helps fund innovation across various sectors, covering eligible costs like staff wages, subcontractors, software licences, and cloud computing.