Research & Development Tax Relief
Research and development (R&D) tax credits were launched in 2001 (updated in April 2023) to reward businesses for innovating and developing their products, processes or service.
It is a highly valuable incentive, that can provide substantial tax relief on eligible R&D expenditure. In certain circumstances you can claim up to 33.35% of a company’s R&D spend, which is recovered either as a reduction in Corporation Tax or a cash repayment for reinvestment in company growth or further innovation.
The government has a target to raise investment in R&D to 2.4% of UK GDP by 2027; R&D tax relief forms part of that goal by reducing the cost of innovation for UK companies.
Is your business eligible?
Whether you are profit or loss making, any UK company can claim SME R&D relief, by meeting the following criteria.
A UK Limited Company
Turnover of less than €100m
Less than 500 Employees
What business activities qualify as R&D?
If you are unsure whether you may be eligible to claim R&D tax credits, below are a few short questions to help identify if you qualify. Within the last 2-3 years…
Have you developed new tools, products, processes or services using technology?
The development of new processes, materials, devices, tools, products or services can be eligible.
Have you tried to improve your existing products through technical changes?
This normally involves making something measurably better e.g. faster, lighter, greener, smaller, more efficient, stronger, more durable etc…
Have you found more efficient ways to produce your products or services?
You could be eligible for R&D tax credits if you have found a way to produce the same product but in a better way (e.g., using fewer resources or less energy).
Have you experimented with new equipment or production techniques?
Experimentation, trials and the development of prototypes suggests that the desired solution is not obvious.
At the start of a project, did you ever think ‘I’m not sure of the best way to do this’ or did you take a risk to advance your product or service?
If there are several ways to achieve something but do not know at the outset which is the best, this can be eligible. (In practice, this normally leads to experimentation!)
Have any of your projects failed for technical reasons?
Your work does not have to be successful to qualify for R&D tax credits! If a project has failed for technical (rather than commercial or managerial) reasons, it may be eligible
If You Have Answered ‘YES’ In any one of the above categories, you qualify for an R&D Tax relief assessment.
How much can your business claim?
SMEs are able to claim up to 33p for every £1 spent on qualifying R&D expenditure. The average claim made by SMEs in the UK is £57,228.
We don’t believe in online claim calculators as every business and every claim is complex and unique. However, we’re always happy to chat. Why not book a no obligation 30-minute discovery call with one of our specialists, who will accurately determine your eligibility and give you a steer on the potential value of your claim?
Make a new claim with Blue Commercial
Making a claim really is more than just a numbers exercise. Each claim is made up of two parts: accounting for costs, and creating an in-depth R&D technical report to support each claim in language understood by HMRC. Our experienced team take the time to support and build your claim and minimise your effort at every stage of the process.
Already claiming R&D Tax Relief?
Our expert consultants can identify costs and technical eligibility often missed by self-claimants, accountants and in-house teams. As standard, Blue Commercial offers a free health-check on up to 2 years’ historical  claim submissions.
Our Products
Energy Reclaims
UK businesses can claim up to 80% of all energy bills whilst using brokers going back as far as the year 2000.
Have you overpaid?
Energy Reclaims
It’s estimated that 80% of businesses have overpaid on their energy contracts
As most energy contracts do not disclose the brokers fee, UK businesses can claim up to 80% of all bills and contracts whilst using brokers going back as far as the year 2000.
We claim from the energy supplier, not the broker meaning our claims are 2-3 times higher than our competitors. Our panel of solicitors charge the lowest fees on the market, and are capped at a maximum of 30%.
No win, no fee - see if your business qualifies
Research & Development Tax Relief
Claim up to 33.35% of eligible R&D spend on innovations and advancements in products, processes, services, and industry knowledge.
Find out more
R&D
Research and development (R&D) tax credits were launched in 2001 (updated in April 2023) to reward businesses for innovating and developing their products, processes or service.
It is a highly valuable incentive, that can provide substantial tax relief on eligible R&D expenditure. In certain circumstances you can claim up to 33.35% of a company’s R&D spend, which is recovered either as a reduction in Corporation Tax or a cash repayment for reinvestment in company growth or further innovation.
The government has a target to raise investment in R&D to 2.4% of UK GDP by 2027; R&D tax relief forms part of that goal by reducing the cost of innovation for UK companies.
Land Remediation
Introduced in 2001 (and updated in 2009), Land Remediation Relief enables businesses to claim corporation tax relief of up to 150% of the cost of cleaning up contaminated land or buildings.
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Land Remediation
Introduced in 2001 (and updated in 2009), Land Remediation Relief enables businesses to claim corporation tax relief of up to 150% of the cost of cleaning up contaminated land or buildings.
Qualifying costs include the remediation of contaminated land, removal of asbestos from buildings, breaking-out buried structures and the treatment of harmful organisms and naturally occurring contaminants such as Japanese Knotweed, radon and arsenic.
Relief can be available on developments, regeneration projects, fit-outs and refurbishments.
The time limit for retrospective claims is within 2 years of the end of the accounting period for which the qualifying expenditure was incurred.
Capital Allowances
Whether you have purchased new commercial premises (freehold or leasehold), improved, or refurbished existing premises or have invested in Plant & Machinery, you could be entitled to significant tax relief on that expenditure in the form of Capital Allowances.
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Capital Allowances
Have you purchased or taken out a long-term lease on a commercial (non-residential) property at a cost of £300,000 or more? Have you spent £100,000 or more developing a commercial property whether owned or rented? Capital Allowances are available to any UK company, partnership or sole trader, who has incurred capital expenditure, usually through the acquisition of an asset (defined as an item with a useful life of 2 years or more). Theoretically, you could be a UK tax payer who owns commercial property in another country, and you may still be eligible!