STRATEGIC RESEARCH & DEVELOPMENT TAX SOLUTIONS FOR FORWARD-THINKING BUSINESSES
Empowering Innovation & Maximising Growth
At Ashton & Carrington (A&C), we help SMEs unlock the full potential of Research & Development (R&D) tax relief. The UK government’s R&D tax credit scheme is designed to fuel innovation by providing tax savings or cash credits on eligible R&D expenditures. These incentives enable businesses to reinvest in growth, drive innovation, and maintain a competitive edge.
What Qualifies as R&D?
To be eligible for R&D tax relief, a project must push the boundaries of science or technology by resolving uncertainties. Qualifying activities may include:
- Developing new or enhancing existing products, processes, or services
- Innovating software solutions or technology applications
- Optimising production methods to boost efficiency and reduce waste
- Advancing sustainable practices, alternative energy, or environmental technologies
- Exploring new materials or manufacturing techniques
Maximising Your Claim: The R&D Tax Credit Report
A successful R&D tax claim requires a robust and transparent report. Our expert team crafts a compelling, HMRC-compliant submission that includes:
- Project Overview – Clear articulation of the project’s objectives and commercial context.
- Technical Narrative – A deep dive into the scientific or technological uncertainties tackled and their resolution.
- Eligible Expenditure – A breakdown of qualifying costs, such as staffing, subcontractor services, consumables, and software.
- Cost Calculation – A transparent methodology for calculating total R&D spend and the tax benefits claimable.
- Supporting Documentation – Detailed evidence, including project plans and technical reports, to strengthen your claim.
Understanding the UK R&D Tax Credit Scheme
The SME R&D Tax Relief is available to smaller businesses, providing tax relief on eligible R&D costs. The rates are as follows for the years below:
- Rate of enhanced expenditure is 186% which translates to if a business has £100,000 of qualifying R&D expenditure, it could claim a tax deduction worth £186,000.
- If the company is not loss-making, this will usually reduce the company’s taxable profit and therefore the corporation tax payable, meaning a 19%-25% (£35,340-£46,500 on £100,000 of qualifying R&D spend) benefit, depending on the company’s corporation tax rate.
- If the company is sufficiently loss-making and R&D intensive (above 30% of total expenditure is qualifying R&D expenditure), the deduction can be claimed at 14.5% as a tax credit (£26,970 on £100,000 of qualifying R&D spend), usually received in cash.
- If the company is sufficiently loss-making but not R&D intensive, the deduction can be claimed at 10% as a tax credit (£18,600 on £100,000 of qualifying R&D spend), usually received in cash.
- If the business is loss-making and R&D intensive, a rate of enhanced expenditure of 186% is still applied, and a tax credit of 14.5% can be claimed (£26,970 on £100,000 of qualifying R&D spend), usually received in cash.
- If not, then a 20% credit can be claimed on qualifying R&D expenditure (£20,000 on £100,000 of qualifying R&D spend). However, this credit is also taxable at 19%-25%, depending on the company’s corporation tax rate, so the net benefit is 15%-16.2% (£15,000-£16,200 on £100,000 of qualifying spend). This will first be offset against any outstanding tax liabilities and then received in cash.
Our team ensures that you claim through the right scheme and maximise every opportunity available.
Claiming R&D Credits When Loss Making
Startups and early-stage businesses can still benefit from R&D tax relief, even if they are not yet profitable. Loss-making SMEs can surrender their R&D-related losses for a cash credit—providing vital reinvestment capital.
For instance a business claiming £186,000, if loss-making, can surrender this for a £18,600 cash credit, improving cash flow and enabling further innovation.
Why Partner with Ashton & Carrington?
At Ashton & Carrington, we combine deep technical expertise with a hands-on, transparent approach. Our team ensures every claim is:
- Ethical & Precise – No inflated figures, just compliant, well-documented claims
- Startup-Centric – We understand the unique challenges of scaling businesses
- Collaborative & Transparent – We partner with you every step of the way to ensure clarity and confidence.
Get Started Today
Tax relief should be an enabler, not a headache. Let's work together to unlock your R&D tax savings and fuel your next phase of growth.
