R&D Tax Incentives

The UK government has, in the last two decades, introduced significant tax incentives to encourage companies to invest in R&D activities, creating valuable IP and providing skilled jobs. The two main regimes are R&D tax credits and the more recent Patent Box.

R&D tax credits

These are now well established and have been made increasingly generous, particularly for SMEs. However, there is evidence that a number of small companies who would be eligible to make a claim have not yet done so. Larger companies can also benefit significantly, and it is important that they revisit their R&D activities regularly to ensure that they are maximising their claims.

The Patent Box

The Patent Box offers a reduced rate of corporation tax on profits derived from patents, ultimately falling to 10%. All companies should be reviewing their patenting policy to see if they can benefit from this generous relief.

Mazars’s National R&D Tax Group consists of experts in all our UK offices who work together closely to maximise the tax savings available to our clients under these generous incentives. We have a wealth of accumulated experience in making successful claims for multinational groups to SMEs across all business sectors.

A Practical Guide to Claiming R&D Tax Relief

Two of our Group members, James Boughton and Lindsay Pentelow, have written a practical guide to claiming R&D tax relief. The book, which can be purchased from https://www.claritaxbooks.com,  explains whether and when a claim can be made, clarifies the different types of scheme, shows and illustrates how the relief is calculated, and has a helpful chapter on the practicalities of making a claim.

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