TaxDigit

Author: Amir Rafiei

R&D tax relief is one of the most valuable incentives available to innovative UK businesses. It rewards companies that invest in developing new products, processes or services by reducing their tax bill or providing a cash benefit.

R&D tax relief for SMEs claims advice from TaxDigit chartered accountants

What Qualifies as R&D?

For R&D tax relief, qualifying work must seek an advance in science or technology and overcome genuine uncertainty that a competent professional could not easily resolve. Many companies underestimate how much of their day-to-day problem-solving can qualify.

What Costs Can Be Claimed?

Eligible costs typically include staff time, subcontractors, software and consumable materials used in the R&D. Identifying and apportioning these correctly is key to a robust claim.

The Changing Landscape

The R&D tax relief regime has been reformed in recent years, including changes to rates and the merging of schemes. Because the rules continue to evolve, it is important to check the current position before making a claim.

How TaxDigit Can Help

Our Guildford-based team helps SMEs identify qualifying projects and prepare well-supported R&D tax relief claims. Get in touch to make the most of your innovation.

R&D Tax Relief for SMEs: UK-Wide Support

R&D tax relief rewards innovative companies right across the United Kingdom, not just those near our Guildford head office. TaxDigit helps SMEs UK-wide identify qualifying work and make robust, well-evidenced R&D tax relief claims.

Our chartered certified accountants pinpoint eligible projects and costs, prepare the technical and financial narrative and submit claims that stand up to HMRC review. We support clients UK-wide, both remotely and from our Guildford office.

R&D tax relief has changed significantly, with the SME and RDEC schemes now merged for many companies and extra requirements such as the additional information form. HMRC scrutiny has also increased, so a vague or over-stated claim is a real risk. We focus on genuine qualifying activity and clear documentation, giving you the benefit you are entitled to without the exposure that comes from a weak claim.

How we help with R&D tax relief

  • Identifying projects that meet the definition of R&D for tax purposes
  • Calculating qualifying expenditure across staff, software and subcontractors
  • Preparing the technical narrative and additional information form
  • Applying the correct scheme following the merged R&D rules
  • Supporting you if HMRC opens an enquiry into a claim

HMRC explains the current schemes here: HMRC guidance on R&D tax relief and the merged scheme.

Frequently Asked Questions

What is R&D tax relief?
It is a Corporation Tax incentive that rewards companies for resolving scientific or technological uncertainty, either by reducing the tax bill or, for loss-making companies, providing a payable credit.

Does my SME qualify for R&D tax relief?
Many do. The key test is whether your project sought an advance in science or technology and faced genuine uncertainty, rather than simply being new to your business.

Can TaxDigit help if I am not based in Guildford?
Yes. We prepare R&D tax relief claims for clients UK-wide, remotely and from our Guildford office.

Full expensing is a generous capital allowances measure that lets companies deduct the cost of qualifying plant and machinery in full, in the year of purchase. For businesses investing in equipment, it can significantly accelerate tax relief.

Full expensing capital allowances advice on plant and machinery from TaxDigit

How Full Expensing Works

Under full expensing, companies can claim a 100% first-year allowance on qualifying new main-rate plant and machinery. Instead of spreading relief over several years, the entire cost is deducted from taxable profits straight away, improving cash flow.

What Qualifies?

Full expensing generally applies to new and unused main-rate plant and machinery bought by companies. A separate first-year allowance covers certain special-rate assets. Cars and items bought to lease are usually excluded, so eligibility should be checked.

Points to Watch

Because relief is given upfront, disposing of an asset later can trigger a balancing charge. Timing of expenditure and the type of asset both affect the benefit, so planning matters.

How TaxDigit Can Help

Our Guildford-based team helps companies use full expensing and other capital allowances effectively. Contact us to plan your investment tax-efficiently.

Full Expensing: UK-Wide Capital Allowances Support

Full expensing benefits companies investing in equipment right across the United Kingdom, not just those near our Guildford head office. TaxDigit helps companies UK-wide make the most of full expensing and the wider capital allowances available on their spending.

Our chartered certified accountants identify qualifying plant and machinery, apply the right allowance and plan the timing of investment for the best tax outcome. We support clients UK-wide, both remotely and from our Guildford office.

Full expensing is generous, but it does not apply to everything. Cars, assets bought to lease out and certain second-hand or connected-party purchases are treated differently, and disposals later on can trigger a balancing charge. We make sure each item is allocated to the correct allowance, including the annual investment allowance and special rate pools, so your claim is both maximised and accurate.

How we help with full expensing

  • Identifying expenditure that qualifies for full expensing
  • Coordinating full expensing with the annual investment allowance
  • Planning the timing of capital investment for tax efficiency
  • Handling balancing charges on the disposal of assets
  • Allocating costs correctly between main and special rate pools

HMRC explains the measure here: HMRC guidance on capital allowances full expensing.

Frequently Asked Questions

What is full expensing?
Full expensing lets companies deduct the full cost of qualifying new plant and machinery from their profits in the year of purchase, rather than spreading the relief over several years.

What does not qualify for full expensing?
Cars, assets bought for leasing and certain second-hand or connected-party purchases generally do not qualify, though other capital allowances may still apply.

Can TaxDigit help if I am not based in Guildford?
Yes. We advise on full expensing and capital allowances for clients UK-wide, remotely and from our Guildford office.

Capital Gains Tax can take a significant bite out of the proceeds when you sell an asset or a business, but valuable reliefs can reduce the bill. Two of the most important are rollover relief and Business Asset Disposal Relief.

Capital Gains Tax rollover relief and Business Asset Disposal Relief planning by TaxDigit

Capital Gains Tax Basics

Capital Gains Tax is charged on the profit when you dispose of certain assets. The gain, rather than the full sale price, is taxed, and the rate depends on the asset and your circumstances. Reliefs and the annual exempt amount can reduce what is due.

Rollover Relief

Rollover relief allows the gain on the disposal of certain business assets to be deferred where the proceeds are reinvested in new qualifying assets. The gain is effectively rolled into the new asset, postponing the tax until a later disposal.

Business Asset Disposal Relief

Business Asset Disposal Relief can reduce the Capital Gains Tax rate on qualifying business disposals, subject to a lifetime limit and conditions that must be met for a minimum period beforehand. Early planning helps secure it.

How TaxDigit Can Help

Our Guildford-based team helps clients minimise Capital Gains Tax using reliefs such as Business Asset Disposal Relief. Get in touch before you sell.

Business Asset Disposal Relief: UK-Wide Support from TaxDigit

Capital Gains Tax reliefs such as rollover relief and Business Asset Disposal Relief matter to business owners across the United Kingdom, not only those near our Guildford head office. TaxDigit advises clients UK-wide, from sole traders and family companies to growing groups, on how to defer or reduce the tax due when they sell business assets or exit a company.

Our chartered certified accountants help you check the conditions, time the disposal and structure the sale so that the maximum relief is secured. We support clients remotely and on-site, wherever they are based in the UK.

How we help with Business Asset Disposal Relief

  • Reviewing whether a disposal qualifies for Business Asset Disposal Relief and the lifetime limit
  • Checking the minimum ownership and trading conditions are met well before a sale
  • Applying rollover relief where proceeds are reinvested in new qualifying business assets
  • Calculating the Capital Gains Tax due and the saving from each available relief
  • Coordinating the disposal with your wider personal and corporation tax position

For the official position, HMRC sets out the rules in detail in its guidance: HMRC Business Asset Disposal Relief guidance.

Frequently Asked Questions

What is Business Asset Disposal Relief?
Business Asset Disposal Relief reduces the rate of Capital Gains Tax on qualifying disposals of all or part of a business, subject to a lifetime limit and conditions that must be met for a minimum period beforehand.

How is rollover relief different from Business Asset Disposal Relief?
Rollover relief defers a gain when proceeds are reinvested in new qualifying assets, while Business Asset Disposal Relief reduces the tax rate on a qualifying business disposal. The two can apply to different transactions in your planning.

Can TaxDigit help if I am not based in Guildford?
Yes. We act for clients UK-wide and provide Capital Gains Tax and Business Asset Disposal Relief advice remotely as well as from our Guildford office.