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Business
R&D Tax Credit
A government incentive that reduces a company's tax bill or gives cash back for spending on research and development.
R&D tax credits are one of the most valuable tax reliefs for innovative businesses. They are available even to loss-making companies as a cash credit. Claiming them requires proper documentation of qualifying projects and costs.
It's the government saying 'thanks for innovating — here's some money back'.
Real world: A small tech company spends £200,000 developing new software. It claims R&D tax credit and receives £50,000–£60,000 back from HMRC either as a cash refund or reduced tax bill.
💡 R&D tax credits can turn innovation spending into real cash in the bank.