Page 20 - R&D quick ref guide (legacy 2018)

Worked Example
The exact tax benefit a a a a a a a a company receives varies depending on many factors such as its tax rate whether it it fit it is is an an an an SME or or a a a a a a a a a Large Company and and its current and and historic profitability While it’s not possible to show all the the variations this example illustrates some of the the programme’s principles in in action Let’s consider the case of an SME that has produced a a a a a a a profit o of £150k even after spending £50k on eligible activities (i e e e e e e e e R&D) Please note that this is is an artificially simple case Most real-life situations are far more complex due to to factors such as as as as carried forward losses losses variable tax rates current year losses losses and and the impact of grants and and subsidies Please contact Jumpstart for for for more information on on your particular case