Navigator News – Why You Should Be Claiming R&D Tax Credits

In the current economic climate, it’s still surprising that more businesses don’t explore all of the tax incentives available to help lighten the burden by either reducing tax payable and/or if applicable, securing a tax repayment.

If you are a company where you have people and costs associated with project activities aimed at advancing what you do, then you could be eligible for R&D tax credits.

R&D tax credits are a great, reliable way to finance further growth for a business. The good news is that since its launch the benefits of the scheme have increased significantly, so there has never been a better time to claim.


R&D tax credits are one of the most attractive government incentives available at the moment, often resulting in significant cash repayments from HMRC. They are designed to encourage innovation and global competitiveness by allowing companies to reclaim some of the money invested in qualifying research and development.


The effect of an R&D tax claim is to increase cashflow by reducing taxable profits or increasing taxable losses. There are three main types of tax benefit that arise from a successful claim for R&D Tax Relief – these are

  1. a payable cash credit;
  2. a rebate of corporation tax; and
  3. an enhanced deduction that can be carried forward.

SMEs can claim up to 33p for every £1 spent on qualifying R&D activities. The exact rate of relief you receive will depend on your Corporation Tax position, and whether you are profit or loss-making.


A common misconception is that the scheme is just for companies with R&D departments and people in white coats. The fact is that any company that spends money trying to improve a product or service through a technological advance, using qualified staff and appropriate project controls, and where there’s doubt about the project’s success, is likely to be eligible.


If you think you may be eligible, speak to us.  Navigator has partnered with Innovation Funding Specialists ABGI-UK, who provide R&D tax relief assistance for UK businesses. ABGI-UK has a proven track record in making successful R&D tax relief claims. They know what to claim, how to claim and, perhaps most importantly of all, the many pitfalls to avoid.

To help you discover if you could benefit from the scheme, ABGi have agreed to deliver a short webinar for clients and contacts of Navigator at 10.30am on Wednesday the 18th of August and attendance is free of charge. If you would like to attend, please contact Nadia Simpson at to reserve your place…

ABGI is a leading international innovation funding specialist. We help companies accelerate their innovation activity by identifying and securing appropriate funding in the form of grants, tax incentives or commercial funding.

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