Heydon Innovation LLP
is a firm of Chartered
Tax Advisers

Advisor in Residence
SETsquared Exeter


Heydon Innovation LLP
Companies House No. OC426053
VAT Registration No. 315 9189 84

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THE SME SCHEME

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How does it work?

Under this scheme, qualifying R&D expenditure is enhanced by an additional 130% in the company’s tax computation.

For example, if £100,000 of qualifying expenditure is identified and this has already been included in the company's accounts, an additional deduction of £130,000 can be included in the tax computation.

For a profitable SME, the additional deduction in the tax computation will reduce taxable profits. The company will then benefit from a reduced corporation tax liability.

For a loss-making SME, the additional deduction will increase the company’s taxable loss. The company can then benefit from surrendering the loss for a payable R&D tax credit.

In some cases, an SME may see a combination of the above two benefits.

What is it worth?

The net benefit of the SME scheme depends on the tax position of the company.

A profit-making SME can expect to see an effective benefit of up to 25% (i.e. 25p for every £1 of qualifying R&D expenditure).

A loss-making SME can expect to see an effective benefit of up to 33% (i.e. 33p for every £1 of qualifying R&D expenditure).

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R&D Tax Relief

A generous tax relief opportunity for innovative and forward thinking companies, creating considerable benefits for shareholders and Directors.

Already Claiming?

The approach taken by advisers differs significantly. This affects the size and accuracy of a claim, along with the time investment required from you.

About Us

We are not what you would expect from 'typical' accountants or tax advisers. Our approach is to keep our ways of working flexible, to fit around our clients.

Heydon Insights

If you are already claiming, we are happy to review your most recent claim for free. We may be able to increase the value and/or make the process easier for you.

Choosing the right adviser will ensure that your claim is maximised and robust. Your adviser should be doing the time-consuming leg work, not you!

Your company does not need to be profit making to make an R&D claim. Loss-making SMEs receive a cash payment from HMRC.

Contact us to discuss your claim

Heydon Innovation really knows its stuff! When we first met I wasn't aware of the type of work that would qualify for R&D tax credits, and I certainly didn't have the time to go through the claims process myself. They quickly identified our R&D spend that would qualify, then put together all the paperwork and dealt with the whole claims process from end to end. Such a great service, that we continue to use every year.