Research and development (R&D) tax credits are part of the UK Government incentives designed to reward businesses investing in innovation – especially those seeking to improve or overcome challenges related to their products and design processes. The tax credits, administered by the HMRC, support these businesses to invest in resources that will accelerate their R&D and help them to ultimately grow.
The scheme has supported UK businesses across a wide range of industries for over 20 years, and is not limited to supporting a singular field or industry.
Qualifying businesses can use their R&D claim to either receive a cash payment or a reduction in their corporation tax. For businesses making an R&D claim for the first time, they are able to claim credits for their last two completed accounting periods – so it can be backdated too.