R&D tax relief: how to make a successful claim

With R&D Tax Relief, the process that leads to a successful claim can be difficult, particularly when navigating through the hundreds of pages of HMRC’s submission requirements.

Manchester Accountants, Alexander & Co are here to help you find the right balance between maximising a claim whilst following the myriad of rules to adhere with HMRC.

What is R&D Tax Relief?

R&D tax relief is a generous government scheme that rewards innovative businesses who seek to make an advance in science or technology, with up to £26 of savings for every £100 spent trying to achieve this. R&D tax experts over at Alexander & Co are here with a few steps you can take towards a successful claim:

Are you eligible?

Firstly, decide whether your company is eligible to qualify for R&D tax relief, identifying the relevant individual projects where an advance in technology has required scientific or technological uncertainties to overcome, before presenting a summary that complies with HMRC’s guidance.

Collate the qualifying costs

Ensure that they reflect the level of work put into the qualifying activity. Also ensure that the allowable and applicable costs are claimed and that the various rules surrounding such areas are applied correctly, such as subcontractors.

Keep a record of activity

Keep a pristine record of your R&D activity itself and the costs information. If HMRC ever wants to enquire into your claim for R&D Tax Relief this will prevent a strong case to the inspector.

Double check which scheme you are applying for

Make sure when you claim, that it is through the correct scheme: Either RDEC or SME schemes. Factors including whether R&D activity has been grant funded and the size of the company can affect this. Some claims can be split between the two schemes, depending on the company’s circumstances.

Present to HMRC in a suitable format

Bring all of the above information, including costs and technical information and a compliance summary in a suitable format to submit to HMRC. This is usually in the form of a report which can be sent to a specialist R&D unit within HMRC.

How long will an R&D tax claim take?

Without the fundamental knowledge of claiming for R&D tax relief, putting together a claim for R&D can be an off-putting and a time- consuming process. Many people use the experience of an accountancy firm to make successful claims and save thousands of tax through this relief. Experienced accountants, like Alexander & Co, can collate all your information, create a robust claim and then submit it to HMRC on behalf of your company.

See also: R&D tax credits: What you need to know

Jon Sumner

Jon Sumner

Experienced director of digital media with a demonstrated history of working in the publishing industry. Strong media and communication professional skilled in media sales, digital strategy, web development,...

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