Have you come across Research and Development relief (R&D) before? If you own or run a company, this relief could be hugely advantageous to you.

HMRC are really keen right now to help companies in developing new and exciting products; these range from anything to developing mobile phone apps to creating a new part for a bike; if the product is new and innovative, it could be eligible for this relief.

If eligible, the company can get an additional deduction on the qualifying expenditure of 130% of that expense – that means that for every £100 spent on R&D, the company saves £24.70.

In addition, if the company makes a loss, which is common in the early developmental stages of a product, the company can turn a loss into an almost immediate cash repayment. of up to 14.5% of the R&D deduction.

Here at Frost Wiltshire, we have considerable experience in preparing and submitting R&D claims and have 100% success rate in doing so.

If this is of interest to you, give us a call and speak to our tax director, Mel Hackney, who will be able to provide more guidance as to whether the expenditure is likely to be classified as R&D.