These provide a valuable cash flow boost to help support innovative activities. For accounting periods commencing from 1 April 2024, a new merged scheme provides an effective tax credit of 15% of qualifying expenditure for most companies.
Early-stage R&D intensive SME companies can still claim an enhanced deduction of 186% of qualifying expenditure. This can be surrendered for a repayable tax credit. For accounting periods commencing from 1 April 2024 this can be worth up to 27% of qualifying R&D expenditure – but a company must have incurred a tax adjusted loss prior to be eligible for the enhanced deduction.
Potential claimants should note that they may need to notify HMRC of an intention to claim R&D tax relief no later than six months after the end of the company’s accounting period. Failure to notify will mean that a company is permanently “locked out” from claiming R&D tax relief for the accounting period concerned.
Where R&D activities result in the creation of a qualifying patent, the profits derived from that patented IP can attract an effective rate of Corporation Tax of 10%, compared to the current headline rate of 25%.
If your company holds qualifying patents or licenses, you could benefit from a 10% Corporation Tax rate on profits derived from that IP. This is a substantial saving when the UK’s headline rate of Corporation Tax is 25%.
Our experts help you:
Whether patents are granted or still pending, we’ll help you achieve long-term value.
They listen hard to my blue-sky thinking and my plans and always have been a valuable sounding board about possible risks and implications. They’ve believed in me and my vision from the start and always articulate exactly what we need to do to realise my plans.
Graeme Lee, Founder and former Chief Executive, Springfield Healthcare Group
I see AAB as a partner. I know that they’ll always be there by my side to support what I need and that is very valuable to me, especially now as we go again to expand the group. Their advice has played a big part in our credibility and in our reputation as a solid, honourable, legitimate business offering quality care.
Graeme Lee, Founder and former Chief Executive, Springfield Healthcare Group
The AAB team set the gold standard for R&D tax credit support. From the start, they’ve acted as trusted advisors, taking the time to understand our technology and shaping our claims in a way that demonstrates future value to HMRC. Their expertise has made R&D credits a reliable source of funding, which is vital for a growing tech business like ours. Working with AAB has meant less stress, more confidence in our claims, and more time to focus on innovation. They just get what we’re trying to build- and that’s made all the difference.
Nish Kotecha, CEO Finboot
Faced with a tight deadline, AAB’s R&D experts quickly identified significant tax savings for us. They guided us through every step, ensuring qualifying projects were robustly documented. Thanks to their knowledge, we received substantial cash repayments within weeks—an impressive result for our business.
Robert Veitch, Managing Director, CV Labels Ltd
AAB has transformed the way we manage our R&D tax credits, streamlining our processes and maximising qualifying costs. Their professional input has simplified a complicated and time-consuming task, ensuring we capture all opportunities for relief while enhancing our R&D activities.
Sean Maxwell, Financial Controller, Western Brand Poultry Products (NI) Ltd
Identifying eligibility and making a claim can be complex but at AAB, our r&d tax credit specialist team make it simple.
We don’t just prepare claims – we combine specialist tax experts with industry-trained engineers to deliver robust, accurate submissions that maximise your return and keep you compliant.
Technical + Financial = A better claim
Our cross-functional team of engineers, scientists, and tax experts ensures:
We speak your language – and HMRC’s.
If you’re investing in innovation, you should explore whether R&D tax credits and the Patent Box can provide valuable savings to your company.
Speak to our Innovation Taxes team for a no-obligation consultation. We’ll quickly assess your eligibility and outline how much you could claim.
You focus on innovating. We’ll focus on delivering results.
There are still many misconceptions about who can claim.
The starting point with any claim is that your company needed to have:
Projects do not need to have been successful to qualifying – it’s the act of seeking an advance which matters.
There does need to be an identifiable technological uncertainty. This is a problem which cannot be readily deducted using existing methods by a competent professional in the relevant field of technology.
R&D tax reliefs are not limited by sector. This means that engineering, construction or manufacturing projects can be just as eligible as work in biochemistry or computer science.
R&D and Patent Box regimes are valuable – but complex. We manage the process from start to finish:
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