R&D tax credits are an incentive provided by the UK government to encourage companies to undertake development activities. The relief is based on the R&D costs that your company incurs and can be used to either reduce the amount of tax that your company pays or to receive a cash payment from HMRC.

Any company in any industry may be eligible for R&D tax credits, however, you must be undertaking development activities that seek to achieve an advance in science or technology, or activities which directly contribute to advances by resolving scientific or technological uncertainty. While this sounds very complicated, please don’t be put off, in reality a huge number of businesses are doing this without realising. The outcome of the project can be tangible, such as new products or processes, or intangible, such as knowledge or cost improvements, even failed projects can qualify.