RDEC Scheme: Claim R&D Expenditure Credit

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.

Recipients of R&D Grants

Want to know more about R&D Tax Credits and the process involved?

Request a free audit

A net tax credit of eligible R&D expenditure up to 13%, (until 31/03/2023)/ 20% from 01/04/2023. As a result, this directly reduces corporate tax liability.

A full refund of the credit generated.

Calculation

A 13% 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).