R&D Tax Credits are a UK tax relief that reward companies for spending money developing new products, processes or services, or improving existing ones, by reducing their tax bill or providing a cash payment.
What counts as qualifying R&D
The work must seek an advance in science or technology by resolving scientific or technological uncertainty, not simply be a new idea for the business. Qualifying costs typically include staff costs, subcontractors, software and consumables, and claims are made through the Corporation Tax return, often under the merged RDEC scheme.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.