RDEC
Helping Large Companies Invest in RDEC Innovation 

The R&D Expenditure Credit (RDEC) is the main incentive for attracting and supporting R&D investment in the UK. In essence, this is designed to make the UK a leader in driving innovation.

Who can benefit
from the RDEC incentive?

Large RDEC Companies 

  • More than 500 employees.
  • Annual Turnover > €100 million AND total Balance Sheet > €86 million.
  • All entities within a group are included when calculating the threshold.
  • Similarly, any incorporated company that conducts innovation. That is to say, regardless of its sector of activity.

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What are the advantages?

A net tax credit of eligible R&D expenditure up to 9.72%, (until 31/03/2020)/ 10.53% from 01/04/2020. As a result, this directly reduces corporate tax liability.

 

 

A full refund of the credit generated.

Calculation

A 12% taxable credit is calculated from eligible R&D expenditures.

Eligible expenditure

Furthermore, some of the eligible expenditures are:

  • Firstly, staffing costs. This includes pension contributions. In addition, some reimbursed business expenses.
  • Some software costs.
  • Consumables. This includes power, light, and heat used up or transformed in the R&D process.
  • Contributions to independent research.
  • 65% of Subcontracted activities to Public Research Centers.
  • Lastly, 65% of Externally Provided Workers (EPWs).

Contact us today to find out how FI Group can help you on your R&D journey.

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