Tuesday, 28 April 2020

Coronavirus and R&D Tax Credits

Research and development (R&D) tax incentives are an effective way for companies to get a cash rebate from HMRC. This incentive and cash rebate could be more important than ever if you are struggling with cash flow due to the coronavirus.

Many companies are taking advantage of the lock-down period and time available to file an R&D claim with HMRC. HMRC are processing claims more rapidly at present to better support businesses cash flows, quoting up to 5 weeks rather than the 8-10 weeks previously.

Whilst rebates vary, over the past 6 months the average claim size for our clients has been £18,000! 

It is a common misconception that to be engaged in Research and Development activities that a company must be running labs packed full of people in white coats. This is not the case! You simply must have attempted to overcome scientific or technological uncertainties by creating new or enhancing existing products, services, software or processes in order to have a qualifying R&D activity.

You would be surprised at how many companies fulfil these criteria without realising they are eligible for a significant tax benefit.

If you would like to discuss making an R&D claim further, please drop me a line.

Best wishes,


Steven Hillman ACA
Chartered Accountant
Tel: 01934 444100

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