Research and Developments Tax Credits

Small and medium-sized companies can currently claim a 225 per cent tax deduction for expenditure on research and development (R&D). This includes the design, creation and testing of new prototypes and the creation of new systems of manufacture.

We work with management to identify projects and project costs, formulate the tax claim and include it within tax computations.

Companies applying for the enhanced tax deduction must be able to demonstrate that they are seeking an advance in science or technology and usually will be required to submit a summary of the R&D projects to HMRC before a tax deduction is given.

The 225 per cent tax deduction represents a direct subsidy of the expenditure incurred. For instance £100,000 spent on qualifying R&D could give the company a £225,000 tax deduction resulting in a tax saving of £51,750 (based on 23 per cent corporation tax rate).

Please contact Alastair Byrne on 01757 294959 or email him at to discuss our taxation services and how we can help you.

Our tax team