R&D and other technology-based Capital Allowances

RDAs provide a 100% first year allowance for R&D capital expenditure. RDAs are the capital expenditure equivalent to the R&D tax relief scheme. RDAs and the other technology-based capital allowances can have a significant positive impact on your tax liabilities.

If any of the following apply to your company then you should be considering applying for RDAs:

  • You have constructed or purchased a laboratory, test bed, or pilot plant
  • You have capitalised large amounts of R&D expenditure
  • You have realised your capital expenditure is ineligible for R&D tax relief

From start-ups to the FTSE100, MMP has seen it all

We are committed to providing excellent service, doing all the heavy lifting, delivering robust claims in the shortest timeframe possible.


Benefits of RDAs

The benefit of the reliefs range broadly from 8.8% to 33.35% of identified and qualified eligible expenditure depending on whether you are a large or small company. The definitions of large and small company size are driven by the EU classifications and UK modifications including revenues, number of employees and balance sheet value

RDAs and MMP

MMP has specific experience with various technology-based capital allowances schemes such as Research & Development Allowances (RDAs) and Enhanced Capital Allowances (ECAs). These schemes make it possible to claim 100 per cent of the capital cost against your taxable profits in the year the cost is incurred. This can deliver a helpful cash flow boost and a shortened payback period.

Consultation

MMP founders have sat on the government’s R&D Tax Relief committee for many years providing an insight of, and input to, the regimes as they develop and change over time. It also enables us to understand what HMRC’s priorities are such that claims can be tailored to reflect their assessment needs.

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