R&D Tax Relief and Patent Box
R&D (Research and Development) Tax Credits and Patent Box claims can be a really useful scheme for businesses to be rewarded on innovation and process improvement. R&D covers all industry sectors and if you are planning on innovating, improving or developing a process, product or service you may be eligible to claim tax relief.
SMH Chartered Accountants have been helping businesses with their R&D Tax Credits since the government introduced both legislations. Typically businesses that may have scope to make new R&D or Patent box claims will be Limited companies usually involved in the manufacturing, IT, engineering and design sectors, that may design and build new products or innovate processes. However, the key thing to remember is, the reliefs are not restricted to these fields, and businesses may not always realise that what they do as part of their product development can qualify for R&D reliefs.
For more information on R&D Tax Credits and Patent Box Claims and how best we can help, please click one of the relevant links. If you want to speak to one of specialists call us on 0114 266 4432 or email your query to [email protected]
10% Tax on ‘Patent Box Profits’
Income streams from ‘Relevant Patents’ can qualify for a reduced Corporation Tax rate of just 10%.
46% Tax relief for R&D expenditure
A company incurring qualifying R&D expenditure under the SME scheme can now claim a deduction against profits equal to 230% of the R&D costs incurred.