Engineering & Manufacturing
IT & Software
Food & Drink Manufacturing
The RDEC is paid to companies by way of Taxable Credit as a percentage of qualifying R&D expenditure. This change means that loss-making large companies, could now benefit from making an R&D Tax Relief Claim.
Since 1st April 2013, companies have been able to claim RDEC at the headline rate of 10% of their qualifying R&D expenditure, and this rate was increased to 11% from 1st April 2015.
The current rate means that companies can now receive a credit of up to 8.8% of their R&D expenditure. This is because RDEC credits are included ‘above the line’ in a company’s accounts and are therefore subject to the prevailing rate of Corporation Tax.