What is it?
The RDEC scheme (R&D Expenditure Credit) is essentially a tax incentive that rewards large companies for investing in R&D activities within the UK. Eligible companies can claim a proportion of their R&D expenditure either as a Corporation Tax bill reduction or as cash credits – even if an R&D project ultimately proved unsuccessful.
The criteria for qualifying activity is purposefully broad – and the RDEC scheme is open to companies in a wide range of different industries and business sectors. Innovation is defined as either the creation of new products, processes or services or the evolution in some way of existing products, processes or services.
To claim RDEC, your business has to be classified as a larger company, with more than 500 staff and either more than €100 million annual turnover or €86 million gross assets. If you’re an SME, you would need to submit your claim through the R&D Tax Credits scheme instead.
What’s the benefit?
You could be eligible to claim back up to 12% of your company’s qualifying R&D expenditure (up to 11% for accounting periods prior to January 2018). This can be returned to you in the form of Corporation Tax relief, a cash credit or a combination of the two.
How do I find out if it’s applicable to me?
Regardless of the industry you operate within, if you’ve taken steps to develop and grow your business, you could be a claim away from receiving readily available tax relief for your efforts.
It’s free to find out if you might qualify – so just give us a quick call on 01926 512 475.
> Want to dig deeper before picking up the phone? You can download more detail here…
A chemicals and development company, specialising in the distribution of Polymers and Additives. Claim Value £335,800.
A waste management company working nationally in materials reclamation, waste and processing. Claim Value £24,780.
Structural design, manufacture for light gauge frame and structural steelwork solutions across ranges of construction projects.