The R&D expenditure credit is designed to incentivise large company investment in R&D by enabling companies to take the credit above the tax line in the profit and loss account, so that the visibility and certainty of the relief is dramatically increased for large companies.
The scheme started for qualifying expenditure incurred after 1 April 2013, and it means large companies can claim a payable tax credit at a headline rate of 10% changing from 01 April 2015 to 11% of qualifying expenditure. And the credit is also fully payable, net of tax, to companies who otherwise have no corporation tax liability.
The relief is an alternative to the existing super-deduction model for three years until April 2016, when it will replace the super-deduction model. In all other respects, the scheme operates like the existing R&D Tax Relief scheme – with the same definitions of eligible R&D and eligible costs.
Every company is different, so we adapt our methodology to your company, leading to a bespoke service for each of our clients.
Through focused financial and technical interviews, MMP determines eligible R&D activities being carried out by your company and maps them to eligible financial costs. To maximise your claim but minimise your time commitment, we then detail our findings in a technical and financial report that is submitted to HMRC.
We manage the entire claim approval process with HMRC to ensure that your claim and payment is delivered as quickly as possible. We are committed to providing excellent service, delivering robust claims in the shortest timeframe possible, enabling you to receive your cash or tax relief as quickly as possible.
MMP has a wealth of experience in claiming large complex company R&D tax reliefs and we would be delighted to discuss any aspect of the new RDEC scheme with you.