Sheffield Inventors' Club
Meet us at the Sheffield Central Library on 5th July at 6pm
R&D tax relief is a way for the Government to support innovative businesses. Under normal corporation tax rules, business expenditure is an allowable deduction for tax purposes. Qualifying R&D expenditure is given an enhanced deduction of 175%. This means that for every £100 of R&D expenditure shown in the accounts £175 is deducted for tax purposes. This enhanced relief means that R&D is effectively subsidised through the tax system, giving a total funding equivalent of up to 52%. To illustrate, under the small companies R&D tax relief scheme, these are the tax savings for expenditure of £10,000:
Innovation
Call 0845 439 8995
Email info@rdtaxadvice.co.uk
| Company tax rate | Total tax relief without R&D claim | Total tax relief with R&D claim |
| Small | £2,100 | £3,675 |
| Marginal | £2,975 | £5,206 |
| Large | £2,800 | £4,900 |
| Loss surrender | no relief this period | £2,450 |
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