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What are R&D Tax Credits ?

The Research and Development Tax Credit scheme is an HMRC initiative to reward companies who have undertaken novel and technically challenging work. Eligible companies can realise a benefit in the form of a cash injection or a reduction in their corporation tax bill, depending on whether they are profit or loss making.
Introduced back in 2000, the scheme was originally designed to incentivise the pharmaceutical industry. Fast-forwarding to today, HMRC has broadened the R&D Tax Credit incentive to a large number of industries.
Many companies in sectors such as Agriculture, Construction and Logistics are unaware of their eligibility and the lucrative Tax Credits available to them.

Who is eligible?

When thinking of R&D you might picture scientists in white lab coats, and that is a fair depiction of R&D. However, the definition of R&D for Tax purposes is different.

How does it apply to my business?

The truth is you don’t need to be reinventing the wheel to qualify for R&D tax credits. You should contact us if you are doing any of the following:
  • Technically challenging work
  • Improving existing processes
  • Overcoming uncertainties or challenges on specific sites or projects
  • Overcoming challenges within data migration or novel software development
  • Making your processes leaner, greener and more efficient

How can R&D Tax credits help me?

I am a SME.​

I am a SME.​

Less than 500 staff or a turnover of less than €100 million and less than €86 million in gross assets. SMEs who have undertaken relevant activities in the last two financial years could claim up to 33p for every £1 spent on qualifying costs for those years.

I am a Large Company.​

I am a Large Company.​

Large companies (more than 500 staff or a turnover of more than €100 million and more than €86 million in gross assets)

  • Can get 13% relief under the RDEC incentive
  • This is an above-the-line credit which is subject to corporation tax
  • RDEC enhances the company’s EBITDA Depreciation and Amortisation (earnings before interest and taxes)

Both incentives can be extremely lucrative and help businesses to innovate and grow through reinvestment, such as:

  • Employing more staff
  • Buying assets such as machinery, software or vehicles
  • Implementing training

Sectors & industries served.

Having assisted companies in many industries (InnoFund has the ability to service every company), we currently focus on sustainable business and adding value to clients in the following industries:

Architecture

Civil Engineering

Agriculture

Construction

Financial
Technology

Electrical and Mechanical Engineering

Software & IT development

Logistics and Transportation

Already claiming R&D tax credits?

Even if you have made a tax credit claim in the past there is a likely chance that we can improve it. 30% of InnoFund’s Revenue comes from optimising previous R&D claims.
  • On average, we have increased existing tax credit claims from accounting firms by 150%, and improved other “R&D specialists” claims by 40%. 
  • When you partner with InnoFund we’ll scope the previous two years to see where we can improve your net benefit, streamline your process and make your previous claims and reports more compliant.  
  • As a proof of concept we will only charge a success fee on any additional benefit that we can secure so you won’t have to pay twice! Any review prior to engagement is complimentary.

R&D Tax Credit Advance.

  • Due to challenges arising from Covid-19, some companies have found themselves waiting much longer to receive their benefits from HMRC.
  • An R&D tax loan is an alternative financing option, allowing companies to use their pending or future R&D tax claims as collateral for a short-term business loan. 
  • We partner with R&D tax lending facilities to provide your company with a loan secured against your submitted claim within a matter of days, as compared to weeks or months.