Research and Development
Background to R&D
Historically, U.K. spend on R&D has lagged behind that of other countries. As part of the government’s move to improve innovation and therefore, increase productivity, measures have been introduced over the last ten years to encourage R&D activity.
The R&D Tax Relief regime was introduced in 2000 and yet many companies are still not taking full advantage of this generous relief. Studies show that awareness of the regime is still very low amongst SMEs whilst among large companies the take-up is sector driven and skewed towards traditional hi-tech industries and scientific research companies.
The R&D Tax Relief schemes provide nearly £1 billion of support to over 8,000 companies every year. You could be one of them.
Specialist Advice From experts in R&D Tax relief
AECOM R&D Tax Relief Services provides great value by saving clients’ money.
We can help clients achieve tax savings through taking advantage of the R&D Tax Relief regime opportunities. Our consultants add value to our clients by enabling them to experience immediate cash flow benefits from the R&D tax incentives available.
We can help you assess which activities and projects qualify for R&D Tax Relief and work with your tax/finance team to compile your claim for submission to HMRC- the regime administrators.
Our claims process aims to minimise risks of HMRC enquiry. With our vast experience in working with HMRC we can ensure that your claims are dealt with without unnecessary delays and enquiries.
What are the benefits?
R&D Tax Relief provides substantial cash flow advantages for all companies qualifying for the relief. These companies can benefit in the following ways:
- Reduce their corporation tax liabilities
- Loss –making SMEs can surrender losses for a cash refund.
- Large companies (and some SMEs) can receive an R&D expenditure credit (RDEC) which will provide cash back to those in loss making situations
What Qualifies as R&D?
Most businesses will assume that if they do not have a designated R&D department, none of their activities will constitute R&D. The definition, however, is generously drawn and it is likely to include many more activities than you might expect.
If your staff carry out work that seeks to achieve an advance in science or technology, not available to a competent professional in the field, they could be performing R&D for tax purposes.
What Does One Expect to Gain
For loss-making SMEs, a payable tax credit is available, equating to 24.75 percent of the qualifying expenditure.
For large companies the RDEC, introduced for expenditure from 1 April 2013 will provide a gross taxable credit of 10% of qualifying expenditure or 7.7% net using the current CT rate of 23%.
How can AECOM Assist?
For more information on how AECOM can help you benefit from R&D tax incentives please contact one of our R&D team listed below
+44 (0) 7867 163 154