Article by Steve Blacker
Everyone likes a cash rebate, so why should CFOs and
organisations be any different? In the current tough business
environment, any initiative that could provide cash savings to help
the bottom line, would be welcomed with open arms. I am therefore
surprised to see that CFOs are still failing to make the most of
the UK Government's R&D tax relief regime.
What are the potential R&D tax savings?
For large companies, the R&D Scheme provides, in
Layman's terms, a net tax benefit of 7.2%-8.4% of qualifying
revenue spend (benefit is falling due to the decrease in
corporation tax) and it is possible to consider costs incurred in
the claimant's last two accounting periods One way of
looking at this is to think of it in terms of technical staff
salaries – broadly, for every say twelve salaried full-time
equivalent staff that work on R&D projects, one of their
salaries will be wholly funded by the tax relief derived from the
scheme. The Small or
