How much could my R&D Tax Relief claim be?

It really depends on how much you have spent on eligible costs and the size of your business.

What I can tell you is that in the three and a half years of Cooden Tax Consulting’s existence, we have claimed more than £3.5m for our clients and the average claim has been around £40,000 of tax relief.

If you are a small to medium sized business performing Research and Development for your own benefit and you are profit making, the Research and Development Tax Relief will generate tax savings of up to 26% of the eligible costs. If you are loss making you could claim up to 33.35% of the eligible costs as a Research and Development Tax Credit.

If you are a large company or an SME business being sub-contracted to by a large or international business, then the R&D Tax Relief scheme will allow you to claim Research and Development Expenditure Credit (RDEC) which in effect gives you tax relief of 8.8% of your eligible costs.

There are quite a few pitfalls in valuing your R&D Tax Relief claim, so working with an expert will help you to avoid those and to maximise your claim.