Research and Development (R&D) tax credits are a government-backed incentive aimed at encouraging businesses to invest in innovation. Companies involved in the development of new products, services, or processes—or the enhancement of existing ones—may qualify for significant tax relief through this programme.
Key Benefits
Tax Efficiency: Reduce your Corporation Tax liability or obtain a direct cash rebate from HMRC.
Improved Liquidity: Unlock additional cash flow to reinvest in further innovation or strategic growth initiatives.
Competitive Advantage: Reallocate the savings toward product development, talent acquisition, or market expansion to enhance your market position.
Each year, UK-based SMEs benefit substantially from this scheme. In the 2021–2022 fiscal year, approximately £4.4 billion in R&D tax relief was claimed by SMEs, with an average claim of around £56,000—demonstrating the powerful role this relief plays in supporting small business innovation.
Eligible Activities
A broad range of activities may qualify for R&D tax credits, including but not limited to:
Developing or improving products, software, or internal processes
Conducting feasibility studies or prototyping
Addressing and overcoming technological challenges
Enhancing existing systems or service delivery models
Timeliness Matters
R&D tax claims are subject to statutory deadlines. Early identification and submission of qualifying activities is crucial to maximizing your entitlement and accessing the associated financial benefits without delay.
Take the Next Step
Discover how your business can take full advantage of R&D tax credits. Phoenix Commercial Finance provides tailored support to help you identify eligible activities, prepare robust claims, and secure the benefits you deserve.
Contact us today to begin your claim process and accelerate your path to innovation-led growth.
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