With the average company claiming in excess of £50,000, research and development tax credits can be a very valuable asset for companies. However, many eligible businesses fail to claim due to misconceptions of what research and development actually involves. Our tax experts summarise the scheme and its benefits for businesses in our R&D guide.

The term ‘R&D’ sparks images of employees wearing white coats conducting experiments in laboratories, and whilst such projects would likely qualify for research and development tax credits, so will a multitude of other projects in a wide range of industries.

Some examples of industries that may involve eligible R&D activity include:

  • Manufacturing and engineering
  • Food and beverage
  • Software development
  • Agriculture
  • Consulting
  • Medical

For a project to qualify for R&D tax relief purposes, it must seek to achieve an advance in overall knowledge or capability in a field of science or technology that could not be easily overcome by a competent professional in the field.

This could be anything from the development of a new process, a piece of machinery, or a piece of bespoke software, and should be innovative or attempt to overcome uncertainty that exists as part of the development process.

Download our R&D guide below for more detailed information on research and development tax credits, including changes that came into force following the Spring Budget 2023.

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