R&D Tax Credits - Tax Breaks for Innovative Businesses

27 January 2020

Launched in 2000 with the intention of boosting innovation, R&D Tax Credits can be especially tricky to understand.

What are R&D Tax Credits?

R&D Tax Credits allow companies to deduct an extra 130% of their qualifying costs from any profits, on top of the existing 100% of qualifying costs that can usually be deducted - a total potential deduction of 230%.

What is considered as Innovation?

This is tricky partly because what counts as R&D and what amounts to true innovation is judged on a case by case basis against criteria which can seem abstract.  Your project must contribute to a wider understanding in a particular field, not just a superficial change to existing technology.

Read our guide R&D Tax Credits in Practice - it will give you an understanding of what may or may not be in the scope of innovation through case studies and examples.  This incentive can help companies to identify new opportunities.  It can really help to talk to an R&D expert so give us a call and we can arrange a meeting.