Small Business R&D Tax Credits – Am I Eligible? 2023-08-14T05:57:52+01:00
R&D tax claims

Is your Small Business aware of R&D Tax Credits

R&D (Research & Development) Tax credits are a great way to reward UK businesses for innovation, but not enough small businesses are aware of them, missing out on the £millions unclaimed.

How R&D Tax Credits work for startups and SMEs

R&D Tax credits is a scheme brought in by the government to help the UK become more globally competitive in the fields of Science and Technology. This could be through seeking advancements in new or enhanced processes, products or services.Eligible projects can reclaim for qualifying expenditure through a reduction in Corporation Tax or a cash sum, and there are different schemes available depending on the size and performance of your business.

Factors that affect SME claims

SME tax credit claims can be affected by a variety of factors.

  • To qualify under the SME scheme, your business must be liable for Corporation Tax, have fewer than 500 employees and have either a balance sheet under €86 million or an annual turnover of €100 million.
  • If your company is part of a bigger group of companies, the whole group needs to be taken into account.
  • Sole traders, LLPs and partnerships are NOT eligible.
  • The project must be related to the field you’re in or planning to trade in.
  • Claims must be made for expenditure in the company’s last 2 accounting periods.

FAQs on R&D Tax Credits for small business

Is my small business eligible to claim?

Eligibility for tax credits depend on a variety of factors, but you must be able to prove there was an element of technological uncertainty in the research & development you were undertaking i.e. no current expert has the knowledge or capabilities to perform the advancement you were seeking.

As a small business, what can I claim for?

Qualifying revenue expenditure includes subcontractor costs, staff wages, materials, consumables, licenses (e.g. software) and sometimes utilities. There may also be an opportunity to claim for capital expenditure, although this is more complex.  (Speak with one of the advisors at R&D Tax Solutions to learn more)

How much could my business claim?

How much you can claim on R&D depends on some of the factors we’ve discussed, but SMEs can usually reclaim up to 33% of qualifying expenditure. Use our R&D tax calculator to find out how much you can claim for, to give you some initial insight.

How to Claim Small Business R&D Tax Credits

The process surrounding R&D Tax credits for startups and SMEs can seem like a daunting process when you first explore your options, but expert help and advice is out there. Here at R&D Tax Solutions we offer specialist services and advice for small businesses looking to make a R&D tax claim submission.  Our goal is to help maximise your claim whilst taking away the stress of the application and paperwork. We operate on a no win, no fee basis and to date we have had a very high success record so far. Don’t be one of the thousands of small businesses to miss out on the tax credits they’ve earned. To get in touch, call R&D Tax Solutions in Manchester on 0161 298 1010 or email

Average R&D tax claim is £56,000

Ask us to review your R&D tax relief claim on your behalf. With our unique fee strcuture you don't pay us a penny until your R&D claim succeeds and provides a benefit to your business!

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0161 298 1010