Don't miss the deadline to claim R&D Tax Credits

The deadline for claiming R&D Tax credits is two years from the end of the year in which you did the work; if you have a 31 December year end, then any costs relating to projects undertaking in the year to 31 December 2015 must be claimed by 31 December 2017.

If you think this may apply to you, and you haven’t yet claimed, or think perhaps there are some projects or costs which you haven’t already claimed for, don’t let this deadline go by without checking whether you can benefit. The government offers support to companies undertaking innovative work through the R&D tax credits regime. Qualifying companies can save up to £25 per £100 of eligible expenditure.

For companies liable to corporation tax, who are working on projects which seek to achieve an advance in science and technology by solving technically challenging problems, the government offers valuable support through the tax system by way of R&D tax credits. These credits provide for savings of up to £25 in tax for every £100 spent and, where a company is loss making, can result in a cash payment from HMRC.

Many companies who are eligible don’t claim, or don’t maximise their claims, perhaps because they don’t believe they are undertaking qualifying R&D, or they under-estimate the costs which they can claim.

Companies of every size and in many sectors undertake qualifying R&D. For example, the following may be eligible projects:

Modifying a manufacturing process
Developing bespoke software
Creating a new product, or improving an existing one
Generally making something lighter, cheaper, quicker or stronger

A company has two years to submit a claim to HMRC – so if you have a 31 December year end, then any costs in relation to qualifying projects undertaken in the year to 31 December 2015 need to be claimed by 31 December 2017.

If you have already submitted a claim, the deadline for amending this is the same – so if you think you may have missed a project, or not included some eligible costs, again you are just in time to revisit this.

If you think this is worth considering please do contact one of the team as soon as possible so we can explore this with you and take any necessary action by 31 December.

And if you have a 31 March year end, don’t put off looking at R&D if you think there is a chance your company can benefit – you have until 31 March 2018 to make a claim for projects undertaken in the year to 31 March 2016. Call us to arrange your free consultation with one of our team.