Research & Development Tax Relief Calculator

Work out how much Corporation Tax you could save with R&D Tax Relief.

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Profit Making Business Formula

In a profit making business you can use the relief to reduce your pre tax profits with an enhancement of 130%. This therefore reduces your Corporation Tax bill.

Qualifying costs are first added and multiplied by any reducing factors (65% for Subcontractors/Agency Workers):

QC = (MA+(SC*65%)+(AW*65%)+ST+SO)

The total qualifying costs are then enhanced by 130%

EN= QC*130%

The total tax saving is then calculated by multiplying the enhanced figure by the Coporation Tax Rate of 19%.

RD = EN*19%

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Loss Making Business Formula

In a loss making business you can use the relief to induce a tax refund to be paid to you or use it to offset future profit.

Tax Credit

You are only allowed to claim a reduced tax rate of 14.5% when requesting a refund.

RD = EN*14.5%

Carry Loss Forward or Back

If you decide to carry the loss forward or back you can claim the full 19% tax rate just like a profit making business.

RD = EN*19%

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(QC) - Qualifying Costs

(EN) - R&D Tax Enhancement of 130%

(RD) - R&D Tax Saving

(MA) - Materials

(SC) - Subcontractor Costs

(AW) - Agency Provided Workers

(ST) - Staff Expenditure

(SO) - Software Expenditure