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Innovation is the life blood of industry, so HMRC offers generous tax relief to companies for investing in research and development, explains Michael Burgess, Tax Director of Mitten Clarke Chartered Accountants in Staffordshire.

These reliefs can substantially reduce your corporation tax liability, and better still eliminate it altogether.  If you have tax losses, then of course you will have no corporation tax to pay.  Instead, you may be able to claim a tax refund, generating a welcome cash injection into your business.

Many companies fail to claim what’s due to them because they don’t realise they are eligible.

Who can claim R&D relief?

To be eligible, first of all you need to be a company which is liable to corporation tax.  So, if you are a sole trader, partnership or LLP and intend to spend a significant amount on research and development, then it would be a good idea to talk to us about incorporating your business.


What qualifies for R&D relief?

You need to be working on a project which advances or improves existing science, technology or processes.  But don’t let this jargon put you off – we’ve made successful claims for businesses of all shapes and sizes in:

  • engineering and manufacturing
  • vehicle repairs
  • IT and software
  • logistics
  • road markings
  • insulation
  • clothing, and many more.

If you’d like help or advice on this research and development relief, we’d be delighted to hear from you.


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