Research and Development Tax Credits
R&D tax credits explained
Rewarding innovation and fuelling growth, R&D tax credits have the power to transform your business.
What are R&D tax credits?
How do R&D tax credits work?
Who qualifies for R&D tax credits?
How much is an R&D tax credit claim worth?
When you deduct your enhanced expenditure from your taxable profits, or add it to your loss, it will result in:
a Corporation Tax reduction if you are profit-making
a cash credit if you are loss-making
or a combination of the two
R&D tax credit calculator
Your exact return will depend on your R&D qualifying costs and activities that our expert team identify. The below R&D tax credit calculation example will estimate what it could be worth:
To reward businesses for their investment, the government allows you to enhance your qualifying expenditure.
£X (amount spend on R&D) x 130% (enhancement rate) = 1.3 x £X = £Y
£Y x 19% (Corporation Tax rate) = £Z
£Z / £X = 25%
£X (amount end on R&D) x 130% (enhancement rate) = £Y
£X + £Y (enhancement) = £YY (enhanced expenditure)
£YY x 14.5% (surrender rate) = £Z
£YY / £X = 33.35%
The benefits of R&D tax credits
At Raw Space, we are passionate about helping innovative companies realise the full potential of R&D tax incentives so that they can grow. This is because the benefits are wide-reaching.
The government benefits from increased productivity which is good news for UK businesses, and good news for the economy. It can also lead to innovation that can affect positive change on a global scale.
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