Research & Development Tax Relief

January 26, 2018


The average saving from R&D Tax Credits made by UK SMEs in 2016 was £61,514.


“SAS have now recovered £138,613 in R&D tax credits. This cash refund has enabled significant ongoing development activity to help grow the business.”

(Mark Fenn – Head of Engineering at Bright Instrument Co. Limited)



Research and Development (R&D) tax relief encourages scientific and technological innovation in the UK. The R&D relief is available to SME’s spending money on qualifying R&D activities. As you would expect, there are some fairly complex rules around exactly what can be claimed under the scheme, so it is advisable to work with an expert on any claim. At SAS we work on a success fee only basis, so if the claim is unsuccessful, we won’t charge for our time.


SME’s are entitled to 130% of additional corporation tax deductions on qualifying expenditure. Based on current corporation tax rates, this reduces a company’s corporation tax liability by up to an additional £24,700 for every £100,000 of qualifying costs. For loss-making SMEs, the tax allowable expense can be sacrificed and a payable cash credit obtained, worth up to 33% of the expenditure identified.


It is widely reported that the number of companies who could claim, but are not aware of this generous relief, exceeds 50%. Back in March 2017, Phillip Hammond suggested that he was going to simplify the process of making an R&D claim, which should go some way towards reducing the number of eligible companies missing out on this generous relief.


Rather than waiting for a simplified scheme that may never materialise, why not get in touch with SAS today:



T: 0333 202 6441

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© 2016 Sterling Accounting Solutions Limited is a company registered in England and Wales under number 07787772. Sterling Accounting Solutions Limited is a member of the Institute of Chartered Accountants in England and Wales Practice Assurance Scheme under registration number C004248247.