R&D Tax Relief (SME Scheme): Who Qualifies and What You Get
Learn how small and medium-sized businesses in the UK can claim tax relief or credits for costs related to innovative research and development projects.
This scheme allows small and medium-sized businesses to claim tax relief for money spent on innovative research and development projects.
Who it's for
This is designed for small and medium-sized enterprises (SMEs) that spend money on projects aimed at solving scientific or technological uncertainties.
What you get
If your business makes a profit, you can deduct a significant portion of your qualifying research and development costs from your yearly profit before you are taxed. If your business is currently making a loss, you may be able to claim a tax credit instead.
What it costs you
While there is no fee to apply, you must invest time and resources into creating detailed technical documentation. You will need to prove that your work involved genuine scientific or technological uncertainty to qualify.
The catch to know
You cannot double-count your savings. If your research costs were already covered by other grants or subsidies, those amounts must be subtracted from your claim, which will reduce the total relief you receive.
How to apply
- Identify which of your project costs qualify as research and development.
- Gather technical evidence that proves the project addressed a technological uncertainty.
- Calculate your total qualifying expenditure.
- Submit your claim through the official government guidance portal.
https://www.gov.uk/guidance/corporation-tax-research-and-development-rd-tax-relief