If you're looking into making a Research and Development Tax Relief claim, then size definitely matters. While any size of business can benefit from the scheme, the terms on offer for small and medium-sized enterprises (SMEs) are even better than for the large company tax relief scheme. The first step to seeing if you're eligible for the Small and Medium-sized Enterprise version of R&D Tax Relief is to make sure you meet the relevant definition of SME.
Here's what it takes to qualify for SME R&D tax relief:
Fewer than 500 employees.
Under 100m Euro turnover.
Eligible to pay UK Corporation Tax.
Using considerable expertise to solve real-world problems.
Investing in staff, software, consumable items, prototypes or materials.
The good news for SMEs is that they have a much higher rate of R&D tax relief than larger companies: a massive 230% on qualifying costs. This means that every £100 you spend allows you to lower the profits you're paying Corporation Tax on by £230!
There's a lot more RIFT Research can do to help and we're as excited as you are to being your best ideas to light. RIFT R&D are specialists in making innovation pay off, and we're the experts in getting small businesses the credit they deserve. We can guide you through the whole claims process, from picking out all your qualifying costs for you to fighting your corner with HMRC. The average SME claim is worth £49,000, so get in touch to make sure you're not missing out.
For a free consultation call 01233 653008 or contact us.
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