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Where Taxpayers and Advisers Meet

Limited company with R&D expenses while pay Tax from

hanman
Posts:1
Joined:Sun Feb 07, 2021 3:36 am
Limited company with R&D expenses while pay Tax from

Postby hanman » Sun Feb 07, 2021 3:54 am

Hello

Thanks you for your time in advance, my accountant already sId no but I like to have a second opinion.

I have a Ltd company. It sunk a big chuck of my income for R&D and server rent to keep our business going forward while I am pay 40% tax. I also pay people outside of the UK to help me with development.

Is it possible to offset some of the lose I am incurring through tax rebate?

Thanks for your time.
Harry.

pawncob
Posts:4745
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Limited company with R&D expenses while pay Tax from

Postby pawncob » Sun Feb 07, 2021 7:15 pm

R&D and other legitimate expenses are deductible against the company's profits.
You get no tax relief.
With a pinch of salt take what I say, but don't exceed your RDA

Incredulum
Posts:2772
Joined:Thu Dec 03, 2009 5:35 pm

Re: Limited company with R&D expenses while pay Tax from

Postby Incredulum » Sun Feb 14, 2021 8:43 pm

You "can" get an R&D tax credit, provided what you're actually doing is making an advance in a technical field, rather than just benefiting your company. So developing a Covid vaccine, for instance. More reading here:

https://www.gov.uk/guidance/corporation-tax-research-and-development-rd-relief#projects-that-count-as-rd


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