Can I still claim R&D tax credits if my company hasn’t turned a profit yet?

If you’ve been investing in research and development but your company hasn’t turned a profit yet, you may still be able to claim R&D tax relief. As a loss making company, you have the potential to receive a cash benefit for every pound spent on R&D. You are still eligible to make a claim if you haven’t turned a profit just yet. With SME R&D relief, even if your company is experiencing a loss, you can receive a tax credit worth up to 14.5% of the surrenderable loss. Additionally, you can deduct an extra 130% of qualifying costs from your annual profit, in addition to the standard 100% deduction, resulting in a total deduction of 230%. As a loss-making company, this means you have the potential to receive a cash benefit of up to 33% for every pound spent on R&D.