Research and Development (R&D) Relief for SMEs

R&D is not necessarily what you might envisage.

Your business does not need to be working in the scientific or technical industries for a start.  Service industries can also qualify. Indeed, Elman Wall Limited has led the way in its application to the Travel Industry.

Designed to stimulate and strengthen the competitive position of UK businesses, it has resulted in substantial corporation tax refunds for many Elman Wall Limited SME clients.

The tax relief on allowable R&D costs incurred on or after 1 April 2015 is 230 per cent - that is, for each £100 of qualifying costs, your company could have its Corporation Tax profits reduced by an additional £130 on top of the £100 spent.

If instead you have an allowable trading loss for the period, this can be increased by 130 per cent of the qualifying R&D costs - so that's £130 for each £100 spent. This loss can be carried forward as well as back in the normal way or you can choose to convert it to tax credits.

To qualify your business needs to be working on the ‘resolution of scientific or technological uncertainty’. In practice, bespoke software solutions and new integration of existing technologies and systems generally qualify. Research and development costs can include employees’ salaries, consultants’ fees, materials, software, utilities and more.

Elman Wall Limited helps SME businesses navigate their way successfully through R&D tax relief claims.