R&D Expenditure Credit for Large Companies

Helping Large Companies invest in innovation

The main incentive for attracting and supporting R&D investment in the United Kingdom

Introduced in 2013, the R&D Expenditure Credit (RDEC) is the main incentive for attracting and supporting R&D investment in the United Kingdom, and is designed to make the UK a leader in driving innovation.

The tax incentive allows for a net tax credit of eligible R&D expenditure up to 8.8%, which directly reduces corporate tax liability.

If the company is loss-making, it can ask for a full refund of the credit generated.

Who can benefit from the R&D Expenditure Credit incentive?

Large companies are defined as any company that meets at least one of the following conditions:
It has more than 500 employees
– Annual turnover > €100 million AND total balance sheet > €86 million

All entities within a group are included when calculating the thresholds.

The RDEC is available to any incorporated company conducting innovation, regardless of its sector of activity.

 

ELIGIBILITY
Creation or improvement of a product, procedure, process, program or equipment, demonstrating originality or substantial improvement

APPLICATION
Claims are made through a self-assessment method in the corporate tax return. Technical and financial documentation to support the claim is necessary in the event of enquiries from HMRC.

ELIGIBLE EXPENDITURE
Staffing costs
– Operating costs (software and consumables)
– Activities subcontracted to qualified entities

CALCULATION
An 11% taxable credit is calculated from eligible expenses.

Applying the corporate tax rate in force (20%) gives a net benefit of 8.8% of R&D expenditure.

Others Services

R&D Tax Relief for SME’s

A tax incentive allowing for a 230% enhanced tax deduction of eligible expenditure to encourage small and medium-sized enterprises to invest in R&D.

learn more

National and European R&D grants

Designed to fund your future projects and the technological innovations of tomorrow.

learn more

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R&D Tax Credits Advisors. R&D Tax Credits Experts.