R&D Expenditure Credit

R&D Expediture Credit (ATL)


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

1Benefits of the scheme

The benefit of the relief is a payable credit that is initially worth 10% (11% from 1 April 2015) of your eligible expenditure, irrespective of whether you are loss-making or profitable.

Earnings and profits should improve because the tax relief can now effectively be accounted for above the line. And companies operating high-value R&D centres in the UK, but with no revenues in the UK, can also now benefit.

Furthermore, as the main rate of corporation tax reduces to 20% by April 2015, so the net benefit of the RDEC increases to 8.8% (which is a full 2% more than the existing super-deduction regime).

Even SMEs will benefit because they are able to claim the payable RDEC on R& expenditure which is ineligible under the payable SME scheme.     

2RDEC and MMP

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.

3Consultation

MMP has been part of the government’s consultative committee on the RDEC scheme from the beginning of the policy deliberations.

All sizes, all types

All sizes and types of companies

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.


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