James Cornthwaite on Research and Development Tax Relief.

Partner James Cornthwaite advises, “Where a small or medium sized company completes qualifying research and development (“R&D”) then it is possible to claim additional tax relief on eligible R&D costs.

 “If a company is loss making, then it may be possible to swap the R&D losses for a cash payment from HM Revenue & Customs.

 “The most common eligible costs include salaries, pension contributions and Employers National Insurance for those carrying out R&D, consumables used up in the R&D, a proportion of utility costs, software used in the R&D process and any subcontracted R&D.

 “Qualifying R&D typically takes place where a company is trying to achieve an advance in science or technology and there is more than just routine uncertainty.

 “Many companies incorrectly assume they are not carrying out qualifying R&D, and so we would always recommend that you discuss this with us so that we can check if a claim is possible.

 “Where an R&D claim can be made the benefits can be considerable.”

 If you would like to discuss a potential claim for R&D, please call our Lancaster office on 01524 67111 and we will arrange a suitable time for you to pop in and chat to a member of our specialist team.