Securing your innovation
Redeem are a strategic partner for business growth, sharing best practice for Research & Development (R&D) tax relief. We believe that R&D tax relief should be easily accessible for UK eligible businesses, to help them improve their cash flow, increase business performance and maintain a competitive edge, ensuring they are not left behind.
We do this via accessing our in-house R&D sector specialists across a multitude of technical and financial functions, to quickly and compliantly navigate the complex R&D landscape, which meets HMRC’s key criteria.
With a combined team experience of over 25 years within the R&D consulting sector, our principles are to ensure we meet three essential areas for our clients; maximising benefits, maintaining compliance and reducing client involvement.
What is R&D tax relief?
Research and Development (R&D) tax relief is a government initiative to encourage innovation across multiple business sectors, helping to accelerate further growth for the UK economy. This is an incentive for UK Limited businesses to reduce their corporation tax liability, or to receive a cash from HMRC, based on their qualifying R&D activities.
Typically, most businesses are unaware that they are carrying out research and development, as the definition is much wider than they think. The initiative now has grown to include multiple industries which are problem solving and overcoming technical challenges. Businesses that invest in creating new products, processes, services, or improving existing ones, are likely to qualify for R&D tax relief.
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Profitable SMEs can deduct 186% of their qualifying R&D expenditure from their net trading position at the end of their respective accounting periods. This results in a net benefit of 21.5%, or £21.5 per £100 spent on qualifying R&D expenditure.
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Loss making SMEs can also deduct 186% of their qualifying R&D expenditure from their net trading position. If pushed into a loss position after the deduction, or already in a loss position pre-deduction, the company can receive a net benefit of up to 18.6%.
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Large companies must claim under a different scheme known as RDEC scheme. The RDEC rate is set at 20% of R&D expenditure. Therefore, large companies can receive a net benefit of 15%, or £15 per £100 spent on qualifying R&D expenditure.
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For companies with accounting periods starting on or after 1st April, 2024, the new merged scheme for Research and Development tax relief would come into play. The merged scheme applies to both SMEs and Large Companies. Similarly to the RDEC scheme, the rate is set at 20% and companies can expect a net benefit of 15%.
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Regardless of whether a company is in a profit or loss position, you can explore this rewarding incentive
Our Process
Project Assessment
After an initial consultation to understand whether you qualify for R&D tax relief our technical team will share their knowledge to collect suitable R&D projects through tailored conversations and prepare the technical report on your behalf.
Cost Collection
Financial documents are collected and analysed, to extract the relevant eligible qualifying costs of your business, which will be attached to the R&D technical report.
Review & Submission
Once we have completed your full and comprehensive R&D report, it is ready to be shared with you for review and submission to HMRC.
