R & D Tax Credits - Oasis Business Finance

About R&D Tax Credits

R&D Tax Credits are a valuable government incentive that rewards for investing in innovation. If your business is developing new products, improving systems or solving technical challenges, you may be eligible for either a Corporation Tax reduction or a cash refund.
These funds can significantly improve cash flow and support continued growth.

What Is R&D Tax Credits?

R&D Tax Credits allow to claim back a percentage of the money spent on eligible research and development activities.

This applies to businesses that are:

Creating new products or services
Improving existing products or systems
Developing tools, prototypes, or internal processes
Working to overcome scientific or technological uncertainty

Why Consider Claiming R&D Tax Relief?

Boost Cash Flow: Reduce tax or receive a cash credit.
Support Growth: Reinvest into staffing, expansion or innovation.
Competitive Advantage: Encourages continuous development.
Applicable to Many Industries: Manufacturing, software, engineering, construction, food production, renewable energy & more.

Benefits of R&D Tax Credits

Businesses can offset qualifying R&D expenditure against corporation tax, leading to immediate tax savings, rebates, or cash credits if loss-making.
R&D tax credits lower the true cost of technical and product development, making it easier for companies to pursue innovation without excessive financial risk.
Loss-making companies can surrender their eligible R&D losses for cash credits, boosting working capital to reinvest in further growth or operational costs.

FAQs - R&D Tax Credits

What is R&D tax credits and how are they paid?

R&D tax credits allow eligible UK companies to reduce their corporation tax bill or receive a cash refund. They’re paid either as a reduction in corporation tax, a cash credit (if the company is making a loss), or sometimes a mixture of both.

Who can claim and who can’t?

Only companies subject to UK corporation tax can claim for example, sole traders and LLPs cannot claim because they don’t pay corporation tax.

Can a loss-making company claim R&D tax credits?

Yes, even if a company is loss-making it can claim. For example, a loss-making SME may surrender the loss and get a cash tax credit.

What happens when a company has already received a grant or subsidy for a project?

If a company has received notified state aid (a grant) for a project, then for that part it cannot claim under the SME R&D scheme it may have to use the “RDEC” (Research & Development Expenditure Credit) scheme instead.

How do I know if my project qualifies for R&D tax credits?

Your project may qualify if you were trying to create something new, improve an existing product or process, or solve a technical problem where the solution wasn’t obvious. If your team had to experiment, test, or try different approaches, it likely counts as R&D.

What costs can be included in an R&D tax credit claim?

You can include many costs involved in the R&D work, such as staff wages, subcontractor or freelancer costs, software, consumable materials, and certain cloud computing and data expenses. These costs must directly relate to the R&D activity.

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