Donald Reid Group

Research and development tax incentives

Research and development (R&D) by UK companies is being actively encouraged by the government through a range of tax incentives. It views investment in research and development (‘R&D’) as a key to economic success.

The government is therefore committed to encouraging smaller and medium sized (‘SME’) companies to claim R&D tax relief. The incentives are only available to companies and include:

  • Increased deduction for R&D revenue spending and
  • A payable R&D tax credit for companies not in profit.

The government is committed to improving access to R&D highlights the need for more SME companies to understand what relief is available and how the process of claiming tax relief works. Recent changes to R&D scheme rates have increased the relief available so a clear understanding is needed to ensure that companies are aware of how the tax rules work. 

This fact sheet on "Research and Development" will give an overview of:-

  • What are the tax reliefs available for SME companies?
  • Research and Development Expenditure Credit scheme (RDEC)
  • Qualifying projects
  • Relevant activities on R&D
  • Types of expenditure
  • Methods of claiming tax relief 

Navigating research and development incentives can be complex. Please do get in touch with the team at DRG Chartered Accountants to discuss further. We would be delighted to hear from you.


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