Research and Development Tax Relief

Here at DNT Chartered Accountants we are always looking at ways to add value to the services we offer.

The Government have suggested in the Autumn 2016 Budget that Research and Development would receive additional funding going forward in a bid to strengthen the economy. We feel that for many of our clients, this opens the door to additional funding through a variety of streams. Our main focus will be to consider what tax savings you are entitled to, what feasibility grants are there and what future grants will be available to help you secure marketing funds to ensure your business is a success.

What makes a project qualify for Research and Development Tax Relief / Grants?

We will provide a free assessment of your projects to help you conclude if you could qualify. Some general points to guide you in the right direction are below:

  • A Research and Development Project should seek a Scientific or Technological Advance. Are you doing anything different this year in your line of business, than you were last year?
  • Did you have to overcome any uncertainty? “Scientific and technological uncertainty exists when knowledge of whether something is feasible, or how to achieve it in practice, isn’t readily available or deductible by a competent professional working in the field.”
  • Is the project feasible? Is there a market for the product? Can you export the product?

Tax Relief

Depending on whether your company is a SME or a large company, your R&D Expenditure can be enhanced by 230% or 130%, respectively. This means, for an SME company, every £1 you incur in R&D expenditure, you receive £2.30 in deductible costs for tax purposes.

Costs you can claim R&D expenditure on include:

  • Employee Costs
  • Materials
  • Direct Utilities
  • Software

This relief will reduce your company profits chargeable to Corporation Tax and thus your liability. Furthermore, if you choose to give up your enhanced relief you can claim to receive tax credits instead, at a current rate of 14.5%.

Grant Funding

Invest NI are committed to helping Companies in Northern Ireland to produce and innovate new products. They can provide up to £50,000 of support towards your costs. With our guidance we can secure funding and help you:

  • Further investigate and plan your idea;
  • Develop, build and test a prototype;
  • Experiment and refine your design;
  • Handles intellectual property.

When you approach us, we will offer a free initial evaluation where we can discuss your product, your business and your plans. We will offer advice on the best plan of action going forward and from there begin to develop your Research & Development Report.

Please do not hesitate to contact us if you have any queries regarding this.


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