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New R&D Scheme

A new R&D scheme has been introduced for accounting periods starting from 1 April 2024. This new scheme combines the two previous schemes (SME and RDEC) into one main scheme, which applies to all companies regardless of size. There is also an extra allowance for loss-making “R&D Intensive” companies.

How Does The New R&D Scheme Work?

Following identification of eligible R&D projects, the total qualifying expenditure will be calculated by Fiscale (see below for eligible costs). 20% of these costs can be claimed as a taxable credit. This credit will be treated as income in your company accounts, and taxed at your corporation rate. The credit can then be used to either offset your corporation tax liability, or, if your company does not have a corporation tax liability, a slightly lower cash credit can be paid.
As the 20% R&D credit is taxable, the net benefit of making an R&D claim in the new scheme is up to 16.2%, depending on whether your company is profitable or loss-making.

What Is An R&D Intensive Company?

If your company is loss-making and spends more than 30% of its costs on eligible R&D projects, then you may be able to claim a higher level of tax relief up to 27%.

Could You Be Eligible?

If you would like to discover whether your business may qualify for R&D tax relief
REQUEST A CALLBACK

What expenditure is eligible for R&D Tax Credits?

Staffing Costs

Consumables

Software

Subcontractors

Technological uncertainties of furniture manufacturing for R&D Tax Credit

Externally Provided Workers

Subsidised Costs

Is the Research and Development Expenditure Credits (RDEC) scheme, right for you?

The legislation is quite complex, however, the criteria for a company to claim under the RDEC scheme, is that they employ more than 500 full time members of staff. Alternatively, the company would be large if its turnover is more than €100m and gross balance sheet assets are more than €86m.. If you do not meet the criteria to be classified as a large company for the RDEC scheme, don’t worry. You may be still eligible for relief under the SME scheme.

The incentive for companies to claim RDEC

Under the RDEC scheme, 20% (1st April 2023) of qualifying expenditure on R&D can be claimed. As RDEC is taxable this means that the net benefit will be 15 pence for every £1 spent on qualifying research and development. Loss making companies can still benefit from RDEC through a net of tax cash credit.

How is R&D Tax Credit treated in your Accounts?

The position for companies claiming under the RDEC scheme is slightly different to those claiming under the SME scheme. As a result, the income is taxable; therefore, any RDEC acts as payment against the tax bill rather than reducing it.

Fiscale’s Step-by-Step guide to RDEC

When working with Fiscale, we make the process of claiming RDEC as simple and painless as possible.

Assessment

We establish if the research and development that you are undertaking, meets the criteria as set out by HMRC. This is usually done over the telephone, followed by a face-to-face meeting. This is to ensure that you are eligible and if so, we will then start the claims process.

Technical meeting

Following the initial meeting to establish eligibility, we will then arrange a follow up to get to know (and understand) the work that you are undertaking. Typically, this meeting takes two hours and involves going though potentially qualifying projects in detail. At this meeting we will talk to the members of your team who are involved in the R&D, along with your financial team. We will also outline what is involved in processing a claim and the level of input required by your team.

Draft report

As a result of the in depth technical meeting, we are then able to draft a report that is based on our discussions and all of the information that you have provided. We will be looking at every angle of your R&D, to ensure that we maximise the value of your claim.

Submission

Once the report has been agreed by you, we then submit it to HMRC and deal directly with them on your behalf. You have the peace of mind that the report will be an accurate representation of your activities. We will also ensure that it is presented in a way that meets the requirements of HMRC.

Review

Once the claim has been made, we will review your systems to help identify any areas of record keeping to support future claims. As a result, all future claims can be streamlined, making the process more straightforward.

Benefits of Working with Fiscale

Our management team have hands on experience in a diverse range of business sectors. We have a highly skilled team of research and development tax experts, including Chartered Tax Advisors, experienced in advising UK companies on all areas of Corporation Tax.

What do our clients get from their relationship with Fiscale ?


“Tailored advice and solutions by R&D Tax Credit professionals to benefit innovators”


As we have a sharp focus on R&D tax incentives and any changes to legislation. We work exclusively in this specialist area of tax and are therefore able to focus our full attention on R&D claims, ensuring correct detail and accuracy at every stage. Fiscale have already invested over £100,000 in bespoke systems to manage the claims process and enhance the client experience. All of our clients have a nominated account manager as a single point of contact, in order to ensure they are fully aware of the status of their claims. Take a look at our client experiences in our Sectors>Case Studies pages.

Friendly, professional company

Toby Staff, New Star Door Controls Ltd.

Very knowledgeable service

Stephen Miller, Miller Hare Ltd.

Very Experienced, efficient and knowledgeable staff

David Bowie, D&G Mechanical Solutions Ltd.
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Could You Be Eligible?

If you would like to discover whether your business may qualify for R&D tax relief
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