R&D Tax Credits are generous government-backed incentives for innovative businesses; the relief is often worth around a quarter of qualifying spend on R&D.
There is typically a 24-month period where a business may amend its Corporation Tax Return (CT600) for an R&D claim. This means that R&D Tax Credits may be claimed back for up to 24 months after an accounting period ends.
What is the claims process?
The claims process for R&D Tax Credits can vary in complexity depending on the project in question.
It is advised that for any claim, all technical information relating to the project must be gathered. For a claim to be prepared, you will need to consult the technical expects of your organisation to obtain all the relevant project information, including what was done and what the goals were.
The company’s finance team must also be consulted in order to obtain and compile all qualifying costs, with supporting documentation to explain why the costs qualify as R&D.
The Corporation Tax amends are then submitted to HMRC. They will usually aim to process SME claims within 28 days of submission, but this can often take up to 6 weeks.
How can Radius help?
Radius has a proven three-step process to help clients submit R&D Tax Credit claims that are both fully compliant and maximised in value.
We would start off with a free 30–60-minute consultation, which could be in person, over the phone, or via webcam. This is where we will discuss whether your R&D project is eligible for tax credits.
From there, we would gather all of the information listed above to put your claim together, including all technical information, qualifying costs and supporting narrative.
We would then seek to maximise your claim within the legislative scope set out by HMRC. Our team also includes an ex-HMRC tax inspector, who will make sure your claim is robust and compliant before submission.
What should I read next?
Our blog is full of helpful guidance, case studies and more important information relating to innovation taxes, including R&D Tax Credits and Patent Box.
