Tips To Claim Your R&D Tax Relief Claim

The basic aim of the UK government to introduce this tax credit scheme is to motivate private sector firms to invest in tasks involving innovation, research and development. It is important for the firm to get a better understanding of the concept of this claim to get maximum benefits out of it.

If your firm qualifies to file this claim, then below are some useful tips to make this process simple.

Know the tax scheme that applies to your company

You need to start off by identifying whether you are eligible under the RDEC or SME scheme. To be recognized as a small firm you must fulfill the below mentioned criteria:

  • Your firm should have less than five hundred employees
  • Your firm should have a turnover of not more than £100 million
  • Your firm must have a balance sheet of not more than £86 million

If your firm doesn’t fulfill any of these criteria, then it will automatically be considered under the RDEC system for large organizations.

If your firm has received a grant

Another significant thing that you need to consider is whether the firm has received grants for your project that you claim for R&D tax credits. If you have got a notification of state-aid grant, the all your projects will get disqualified from the tax credit scheme.

If your firm has obtained a non-reported state-aid grant, then your projects will get eligible for receiving an R and D tax relief. If the entire project got funded via the grant, then it will be needed to file for claim in the RDEC scheme that enables one to recover 9.7 percentage of the overall cost of development.

Choose the right kind of project

At the time of submitting technical description, it is required for you to choose the right kind of project to be claimed. Defining as a ‘project’ depends on the number of pieces that you forficate an activity into.

You need to set the level of detail so that you cover at least one to three projects maximum in your claim. It is perfectly fine to cover one project in the claim, as long as it is a good representation of all that has occurred.

Be practical with your losses

Another great technique to maximize your tax credit relief claim is to surrender your losses. If you expect continued losses in tax in coming years, then it is required that you surrender your current loss. Though it is tough to carry losses, but it has a possibility to earn greater return for your business.


Many businesses don’t apply for claim under R and D tax relief due to ignorance or assuming that their claim process would not get accepted. However small business is if it has denoted time, money and effort in carrying out development and research tasks should apply under this claim.

All these tips would greatly help in simplifying the process of filing tax credit relief claim and getting you maximum returns for your innovation and development projects.

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