dua@dua.co.uk 020 8421 3555

How R&D Tax Relief Could Help Your Business

21 Nov

How R&D Tax Relief Could Help Your Business

Only 10% of eligible businesses in the UK claim research and development (R&D) tax relief, meaning the vast majority are missing out on this incentive for innovation. Here, Dua & Co explore how R&D tax relief works, why it was introduced and how your business could benefit from it.

What are R&D tax credits?

In 2000, the UK introduced new tax legislation to foster innovation by offering tax benefits to businesses engaged in certain qualifying R&D expenditure. Under the system, businesses engaged in projects intended to ‘achieve an advance in overall knowledge or capability in a field of science or technology’ can claim extra deductions from their Corporation Tax (CT), or a payable tax credit in certain circumstances. 

Which businesses are eligible?

The exact nature of the R&D relief for which your business could be eligible can vary according to the nature of the business, the R&D project being claimed for and the size of the company. 

The most relevant for small and medium sized businesses is the SME Scheme, under which companies with fewer than 500 employees and either an annual turnover under €100 million or a balance sheet of under €86 million, can claim back up to 230% of their qualifying R&D expenditure. This scheme also allows loss-making companies to surrender their losses and receive a tax credit in return. 

All businesses which do not fulfil these criteria must use the Research and Development Expenditure Credit (RDEC) scheme. Introduced in 2013, RDEC offers less generous incentives to larger businesses, but can also be used by companies with no CT liability to receive cash payments or tax deductions. In certain circumstances SMEs can claim under this scheme, including when carrying out subsidised or subcontracted research on behalf of another organisation. 

However, while R&D tax relief can be hugely beneficial, it also carries penalties for companies using the incorrect scheme. A full overview of the relief schemes available, and a complete list of the eligibility criteria, can be found on the HMRC website.

How could R&D tax relief benefit my business?

For businesses carrying out research and development in eligible fields, these tax relief opportunities can offer lucrative benefits and rewards – as well as helping to further cultivate UK industry’s most ground-breaking areas of innovation.   

As experienced accountants in Watford and London, Dua & Co offer expert guidance and business advice on all your tax affairs, including your R&D relief eligibility. Our team of highly qualified accountants are on hand to make sure you know everything you need to remain compliant while receiving the maximum benefits that you are entitled to. 

Please get in touch to find out how we can help your business, or to arrange a free initial meeting to discuss our tax planning and tax strategy services.

Related Blogs

Dua & Co’s Guide to Your Property Investment Options

When it comes to investing in property, many people aren’t

read more

Updates on Making Tax Digital

This year, HMRC began the introduction

read more

How Dua & Co. Improve Your Business Processes

Making sure that your business processes

read more

Improving the Performance of Your Care Home Business

We’ve discussed before here at Dua & Co the many ways

read more

Follow us on: 


Dua & Co (Watford)

1st Floor, 5 Century Court, Tolpits Lane, Watford, WD18 9PX

+44 (0)20 8421 3555

Dua & Co (City)

12 Hay Hill, Mayfair, London, W1J 8NR

+44 (0)20 3356 9706

get in touch

yesBy checking this box, you agree to receive Dua & Co updates and offers via email. All subscribers must be over the age of 16. Recurring automated marketing messages will be sent to the email address provided. You can unsubscribe at any time.View Terms of Use and Privacy Policy.

All material on this site is used by permission. We may use cookies on this site. See our cookie policy here

Registered to carry on audit work in the UK and Ireland; regulated for a range of investment business activities; and licensed to carry out the reserved legal activity of non-contentious probate in England and Wales by the Institute of Chartered Accountants in England and Wales.

Read the Dua & Co Blog here

Provision of services regulations disclosure here

© Dua & Co 2018

Dua & Co. Limited trading as Dua & Co Chartered Accountants.

Dua & Co Limited is registered in England & Wales.


As a business, we have been clear in our commitment to Diversity and Inclusiveness. An important part of this is understanding the 'mix' of our people and measuring progress towards the goals that we have set ourselves. We can share our approach to employee monitoring, together with some statistics showing the make-up of our business. Click here to view the results of our annual probate diversity survey