Haslers calls on innovative businesses to take full advantage of the ‘generous’ R&D tax system in the UK

Last year nearly 40,000 claims were made for R&D tax credits in the UK, almost double the amount on the previous year, presenting an opportunity that cannot be missed, according to Haslers Chartered Accountants.

Businesses both large and small benefited from £3.5 billion in tax relief last year from the R&D (research and development) tax credit, which helped contribute towards £24.9 billion of R&D expenditure across the nation.

While there is a perception that only the largest businesses or projects can benefit from the relief, Loughton-based Haslers said that this couldn’t be further from the truth.

It points out that the Small and medium-sized enterprises (SME) R&D Relief, available to business with fewer than 500 members of staff or a turnover below £87m can deduct an extra 130 per cent of their qualifying R&D costs from their yearly profit, as well as the normal 100 per cent deduction, to make a total 230 per cent deduction – which equates to an additional 33p for every £1 spent on R&D.