• Irish R&D Tax Credit
    • Irish R&D Tax Credit
    • Irish R&D Calculator
  • Irish RD&I Grant
  • UK R&D Tax Relief & RDEC
    • UK R&D Tax Relief & RDEC
    • UK R&D Calculation Examples
  • Industries We Service
    • Software & IT
    • Pharma & Medical Devices
    • Food & Beverage
    • Engineering & Manufacturing
    • Additional Industries
  • About Us
    • Our Team
    • What We Offer
    • Our Process
    • Success Stories
  • Partner With Us
  • Recent News
  • +353 1 234 2517
  • +353 86 319 4747
  • info@braithwaite.ie
Free Consultation
  • Irish R&D Tax Credit
    • Irish R&D Tax Credit
    • Irish R&D Calculator
  • Irish RD&I Grant
  • UK R&D Tax Relief & RDEC
    • UK R&D Tax Relief & RDEC
    • UK R&D Calculation Examples
  • Industries We Service
    • Software & IT
    • Pharma & Medical Devices
    • Food & Beverage
    • Engineering & Manufacturing
    • Additional Industries
  • About Us
    • Our Team
    • What We Offer
    • Our Process
    • Success Stories
  • Partner With Us
  • Recent News
Twitter
Linkedin
  • +353 1 234 2517
  • +353 86 319 4747
  • info@braithwaite.ie
Free Consultation
  • Irish R&D Tax Credit
    • Irish R&D Tax Credit
    • Irish R&D Calculator
  • Irish RD&I Grant
  • UK R&D Tax Relief & RDEC
    • UK R&D Tax Relief & RDEC
    • UK R&D Calculation Examples
  • Industries We Service
    • Software & IT
    • Pharma & Medical Devices
    • Food & Beverage
    • Engineering & Manufacturing
    • Additional Industries
  • About Us
    • Our Team
    • What We Offer
    • Our Process
    • Success Stories
  • Partner With Us
  • Recent News
Twitter
Linkedin

UK R&D Tax Relief & RDEC Calculation Examples

The R&D Tax Relief for UK small and medium-sized enterprises (SMEs) has the same calculation for all companies applying to the program but your companies corporation tax has an effect on the return. Below we have outlined three scenarios with the same R&D expenditures but the difference is a company in a loss position, breakeven, and profit-making for the year-end. We have also taken a look at how to calculate the RDEC expenditure for large corporations. (Please note that the calculations are a rough estimate of credit or cash refunds your business can avail. However, there are some additional calculations that may affect this credit or refund. This tool should be used as a guideline only and not in the place of professional, accurate consultation.)

R&D Tax Relief Loss Making Scenario

Total Expenditures = £100,000.00
R&D Enhancement = £130,000.00
Total R&D Enhancement = £230,000.00
Loss At Year-End = £50,000.00
Total Benefit To Company = £26,100.00

R&D Tax Relief Breakeven Scenario

Total Expenditures = £100,000.00
R&D Enhancement = £130,000.00
Total R&D Enhancement = £230,000.00
Breakeven For Year-End
Total Benefit To Company = £18,850.00

R&D Tax Relief Profit Making Scenario

Total Expenditures = £100,000.00
R&D Enhancement = £130,000.00
Total R&D Enhancement = £230,000.00
Profit To Year-End = £50,000.00
Total Benefit To Company = £11,600.00

RDEC Expenditure Calculation

Staff Costs = £100,000.00
Subcontractor Costs = £50,000.00 * 65% = £32,500.00
Consumable Costs = £100,000.00
Total Expenditure *13% = £30,225.00

Get Innovation Funding Today

Engage our experts to optimise your R&D Tax Credit claim process, manage the compliance burden and reduce uncertainty
Contact Us

NAVIGATION

Irish R&D Tax Credit
Irish R&D Calculator
Irish RD&I Grant
UK R&D Tax Relief & RDEC
UK R&D Calculation Examples
Industries We Services

NAVIGATION

Our Team
What We Offer
Our Process
Success Stories
Recent News
Contact Us
Privacy & Cookie Policy

IRELAND

28-32 Upper Pembroke Street
Dublin 2, D02 EK84
Office: +353 1 234 2517
Email: info@braithwaite.ie

CANADA

900-2235 Sheppard Ave E
Toronto, ON M2J 5B5
Office: 1-416-499-2861
Email: info@braithwaite.ca
Fax: 1-416-499-8543
eFax: 1-437-889-0955

Twitter
Linkedin
© Braithwaite Technology Consultants Inc 2022. All rights reserved.
CACCEPT
Manage consent

Privacy Overview

We use necessary cookies to enable you to move around our website and use its features. You may disable these by changing your browser settings, but this may affect how our website functions.
We would also like to set optional analytics cookies to help us improve our website by collecting and reporting information on how you use it. However, we will not set these cookies unless you enable them by using the on/off tool below and click the save and close button. Using this tool will set a cookie on your device to remember your preferences.

For more detailed information about the cookies we use, see our Read More
You can give or withdraw your consent at any time by clicking the ‘C’ icon at the bottom left of the website.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT