UK Tax Credits
TABLE OF CONTENTS
R&D Tax Relief
If your UK limited company is conducting or considering the activities below, CTI can help you maximise research & development (R&D) tax credit:
- Creating New Solutions
- Improving Existing Solutions
- Solutions can be: Products, Processes, Services, Materials, Devices
Small/Medium-Sized Enterprise or Large Company?
A company is considered a Small or Medium Sized Enterprise (SME) if it:
- employs less than 500 staff AND
- earns a turnover of under €100m or has a balance sheet total under €86m
SMEs qualify for a 230% superdeduction or a 14.5% refundable credit.
Should a company be over these thresholds, or provide subcontracted services to a large company, then the company would be eligible for a 13% (taxable) credit under Research & Development Expenditure Credit (RDEC). The net benefits for each scenario are:
| SME | RDEC | |
| A loss-making SME | Up to 33% | 11% |
| A profit-making SME | Up to 25% | 11% |
| Large Company | 11% |
What Types of Costs are Eligible?
| SMEs | Large Co. (RDEC) | |
| Employee Costs (Direct & Indirect) | ||
| Externally Provided Workers | ||
| Subcontractor Costs | ||
| Software | ||
| Consumable Items | ||
| Clinical Trial Volunteers | ||
| Contributions to Independent Research |
