What are the payable R&D expenditure credit rates for RDEC claimants?

The Research and Development Expenditure Credit (RDEC) scheme is a UK government initiative aimed to stimulate private sector investment in research and development. The RDEC scheme is mainly used by large companies, but it can also be accessed by some small and medium-sized enterprises (SMEs) under certain circumstances.

Previously, the RDEC scheme offered a payable tax credit at a rate of 13% on qualifying R&D expenditure. This tax credit is given ‘above the line’ in the company’s profit and loss account, effectively lowering the company’s overheads. However, this has recently been increased to 20% – providing even more incentive for innovative businesses.