R&D Tax
Credit Calculator
you could receive.
R&D Tax Credits
How much could you claim?
SME’s & Large companies in the UK can potentially claim thousands in R&D Tax Credits. To be eligible it doesn’t matter if your company is profitable or loss making, providing you are attempting an innovative project from a technological or scientific stand point.
Some companies falsely assume that if their project fails they cannot claim for these costs but this isn’t true. Any costs incurred attempting R&D under the guidelines can be attributed towards your annual claim.
Typical costs that can be included
R&D Tax Credit Calculator
This calculation is intended as a rough guide
SME Scheme R&D Tax Credits
Most companies will fall under the SME bracket however, the calculation will vary depending on whether you are a profit or a loss-making company. Use our R&D Tax Credits Calculator for a quick and easy estimate. Here’s more of what you need to know about the SME incentive:
- If you are a profit-making company, you will see your benefit in the form of reduction to your Corporate Tax bill. The rate for this is 25%.
- For a loss-making company, you will receive the benefit in the form of a cash rebate as you don’t have a tax liability to offset.
RDEC Scheme R&D Tax Credits
Predominantly large companies fall under the RDEC (Research and Development Expenditure Credit) branch of the incentive. However, the RDEC incentive is still available for Small & Medium Enterprises (SMEs) who are unable to claim through the traditional SME route.
- RDEC claims are paid as a taxable credit which equates to 13% of your eligible R&D costs. The net cash benefit after tax is 11%.
- The tax benefit can be utilised to reduce your corporation tax bill or in loss-making scenarios, you will receive a cash credit from HMRC.
How to calculate your R&D Tax Credit Claim?
An example of a profitable company making an R&D Claim:
- The Company Turnover is £1.5m
- The company makes a profit of £250k
- Corporation tax owed at 19% is £47,500
Their benefit is calculated as follows:
£250k net profit – £130k enhanced R&D costs = £120k
- 19% of £120k =£22,800 revised corporation tax bill
SAVING THE COMPANY £24,700
Still unsure which R&D Tax Credits incentive is right for you?
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