I’m excited to introduce to you – Zest Research & Development. We’ve set up shop to help companies make the most of the tax credit which is being offered by HMRC to boost innovation in the UK. We think a lot of companies are missing out on this reward and we want to change that.
In the tax year 2016-17 fewer than 2 in every 100 UK companies made a claim for R&D Tax Credits . Many of the UK’s most innovative industries are missing out, for example; agriculture, forestry, and fishing amount to fewer than 1 in ever 100 claims . Some of these industries, agriculture being a great example, perform R&D every day, often without realizing it. And with the chancellor, Rishi Sunak, announcing plans in his Spring Budget to increase investment in R&D to £22bn a year  – there couldn’t be a better time to get started.
Here at Zest – we want to make sure every company that does qualifying work, receives their reward. More importantly; we want to go about it in the right way.
That means we’ll be on hand so that our clients can make the most of the R&D tax credit scheme without disrupting their work. If they have a claim to make, we’ll do all of the heavy lifting – from their first consultation, all the way to the tax credit being processed as a payment into their account or a reduction in their corporation tax bill.
We want to build our business by making sure our clients would recommend our service - that’s why Zest R&D guarantee:
R&D tax credits are a tax relief designed to encourage UK companies to spend more on Research and Development. The governments intention is to encourage greater investment in innovation. And with Brexit looming, there couldn't be a better time for the UK to innovate.
If a business is performing R&D, the tax credits will either reduce their liability to corporation tax or allow them to surrender some of their losses for the year as a payable cash sum. For SME’s - this could mean up to 33% of the money they spent on R&D is paid back to them.
Most importantly - the definition of R&D is broader than you might expect. It doesn’t require ‘white coat’ laboratory research to take place. If a company has attempted to resolve some kind of uncertainty and make an advance in science or technology – this will probably qualify as R&D. This can include changes to processes and services – as well as products. Here are some examples of work that could qualify for R&D tax credits:
If you may have something that qualifies, or your considering doing some work that may qualify in the future:
 Research and Development Tax Credit Statistics (October 2019): https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/837282/Research_and_Development_Tax_Credits_Statistics_October_2019.pdf
 Spring Budget Transcript: https://www.gov.uk/government/speeches/budget-speech-2020
Find out how how companies can meet the deadlines for R&D tax credit claims and all the key R&D tax relief changes coming into place in 2023.
Costs involved in R&D are tax deductible and there are two ways in which R&D costs can reduce a companies Corporation Tax liability. Firstly – with the usual deduction of 100% of the cost from your companies profits. In addition, the R&D Tax Credit scheme allows a further deduction of 130% of eligible R&D costs, […]
Chancellor Jeremy Hunt has announced a series of changes to the UK research and development (R&D) tax relief regime, including a cut to the deduction and credit rates for the SME scheme, the R&D tax credit. The rate of the large company scheme, the R&D expenditure credit (RDEC) will be increased from 13% to 20%, […]