Two-year window for claiming R&D tax credits is ending soon

The two-year window for claiming Research and Development (R&D) tax credit is about to close for companies with upcoming year-ends.

Companies can claim R&D Tax credit for an accounting period ended within the past two years, which means that any company with an April accounting date has until  31 March 2023 to potentially make a claim for qualifying expenditure incurred for the year ended 31 March 2021 and so on.

We encourage companies to get in touch with the Radius team for a consultation so that they can ensure they don't miss out on this valuable relief.

How does the relief work?

R&D Tax Reliefs provide companies with the opportunity to claim generous tax savings for their innovative activities.  Opportunities for making a claim are often overlooked, with business owners overestimating the innovation required to claim. Projects qualifying for R&D relief include those seeking an appreciable improvement in science or technology.

So, if you are paying technical staff to solve technical problems there may be scope to claim if you are:

• Modifying a manufacturing process
• Developing bespoke software
• Creating a new product or improving an existing one

Eligible companies can obtain tax relief on qualifying expenditures either by reducing taxable profits or creating (or increasing) tax losses which can be sacrificed to HMRC in return for a cash repayment.

The SME scheme is currently worth around 25% of qualifying R&D expenditure. However, this will change in April 2023, when this figure will be reduced to 21.5%.

Our Radius specialists focus on quickly and concisely assessing a company’s eligibility to claim Research and Development tax reliefs. They will then ensure that your claim is completed as painlessly as possible, is compliant (we have a 100% success rate) and is maximised. 

So, if your business has a year-end that coming up, why not speak to a member of the Shorts' Radius team and find out just how easy it is to make your business's innovation pay or visit our resource library for more downloadable guides.