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R&D tax relief: what, when and how

If you have a company that does a lot of research and development, you will want to look into the R&D tax claims you can make. In some cases, you can get reimbursement for up to 33% of your development costs.

As your fiscal year-end tax return deadline approaches; knowing what you can claim, how much you might get back, and the protocols you have to work within can be extremely important.

Should you get help to claim R&D tax relief?

You don’t want to miss anything that you might be able to claim, and you also don’t want to make mistakes by claiming a credit if you aren’t eligible. That could get you in trouble with HMRC if you claim something you shouldn’t. Naturally, that would be a serious concern, and could harm your company and its reputation. You may also have to pay back the money, and that can be hard for smaller companies. Getting assistance to file for your credits can help avoid those kinds of issues.

When do you need to file your R&D tax relief claim?

In the UK, you must pay careful attention to the accounting periods for corporation tax so you don’t miss out on your claim. Any claim for R&D tax relief has to be made in either your CT600 return or your amended return.

You have up to two years after the relevant corporation tax accounting period has ended to make your claim. Overall, it is better to make your claim as soon as possible. That can reduce the risk that you will forget, or that you will misplace any paperwork or other information you need.

Is it worth claiming R&D tax relief?

The tax relief on R&D costs that fit the definition and are allowable is 230%. For every £100 in qualifying costs, a company can reduce its profits in the accounts by £130 on top of the £100 that was spent. That can make a significant difference, especially for SMEs.

Traditionally, these small and medium sized companies don’t have the cash flow and capital that larger companies have, so receiving credits can help these smaller businesses stay competitive. A lot of companies focus on research and development as a part of their growth strategy, and these tax credits reward those companies.

What do I need to do to claim R&D tax relief?

Filing for every tax credit you are entitled to can seem daunting, and can make you feel like you aren’t quite sure if you’re doing things right. Fortunately, there is help available to make sure you file things on time and get all the credits that are owed to you. Then you can continue your R&D efforts and keep growing your company. GovGrant can help your company claim its entitlement for R&D tax credits.

Reach out to us today, and get started on your R&D tax credits, so you can see how much you really can get back.

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