R&D tax services
South Wales is at the forefront of research and development (R&D) in the UK.
Swansea University is a research-focused institution which has, in recent years, drawn investment from global names such as Rolls Royce and Tata Steel. The Institute of Life Science at Swansea University Medical School is another hotbed of new ideas and serious research.
Swansea has its own Innovation Quarter and is home to one of only seven TechHubs worldwide.
As such, there are a growing number of businesses engaged in what counts as R&D for tax purposes, which could be entitled to claim vital research and development tax reliefs.
You could be eligible if your business works on projects that seek to advance science and technology; that try to overcome uncertainty; and are tackling problems that couldn’t be worked out easily by another professional in your industry.
You can claim SME R&D tax relief if you employ fewer than 500 people, have an annual turnover of less than €100m, or have less than €86m on your balance sheet. It’s really worth having – if HMRC agrees that it applies to your project, you’ll be allowed to deduct an extra 130% of qualifying costs from your yearly profit, in addition to the standard 100% deduction, adding up to 230% in total.
If your business is larger, you might still be able to claim relief in the form of RDEC – the research and development tax credit. This replaced a relief previously known as the large company scheme and, though it’s aimed at bigger firms, can be claimed by SMEs subcontracted to carry out R&D by a larger one. If you made a loss in the relevant period, you can use the credit to cover any liability. Otherwise, you’ll get a cash payment.
Talk to one of our R&D tax experts to find out how your business can capitalise on the innovative work it is undertaking.