Information

Newtons Chartered Certified Accountants
470 Hucknall Road
Nottingham
NG5 1FX

Email:enquiries@newtax.co.uk
Tel: 0115 960 9955

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Benefits to you

The tax relief which is available is either given as an additional Corporation Tax deduction or even if no Corporation Tax has been paid, a repayment can be obtained by in effect surrendering the R & D relief back to HMRC in exchange for an immediate payment. 

Potential benefits

To illustrate the potential benefits, we have considered three senarios based on the year to 31st March 2015:

  • A Ltd has taxable profits of £550,000 and a claim for R & D costs of £200,000.  The claim gives £53,125 of tax savings.
  • B Ltd has taxable profits of £150,000 and a claim for R & D costs of £100,000.  The claim gives £25,000 of tax savings.
  • C Ltd has taxable profits of £Nil and a claim for R & D costs of £100,000.  The claim gives £18,125 of tax payable to the company.
       

As a further example, D Ltd has taxable profits of £Nil for the year to 31st March 2016 and a claim for R & D costs of £100,000.  The claim gives £18,850 of tax payable to the company.

Maximising the claims

As well as helping with claims for previous years, we also provide proactive advice on maximising future claims. For example, the remuneration and benefits policy of a company can be reviewed to maximise the potential value of claims.  If the level of R & D fluctuates over years, then care needs to be taken over which years, for example, bonuses and company pension contributions are paid.