Research and development tax credits – use our complimentary service to check if you are eligible to claim
Research and development tax credits offer a generous tax relief for many companies which, in the current climate, can provide a vital lifeline to businesses. This relief can help fund further development in the firm or be utilised in other areas of the business.
We have developed a streamlined procedure to check if your business is eligible to claim for research and development tax credits. Please complete the form below or email email@example.com and we can arrange an online or phone consultation, which can take as little as 30 minutes to evaluate if you can claim and discuss how we can assist you.
How much can be claimed?
Eligible businesses can claim back up to 186% tax deduction on the amount they have spent on qualifying R&D expenditure.
You do not have to make a profit to claim, a business which is loss-making can claim a cash payment from HMRC.
There is no longer a minimum amount that can be claimed, so projects of any cost are now eligible for R&D relief. There is also no overall limit to what can be claimed.
Why don’t many businesses claim R&D tax credits?
Many businesses do not claim as they are either unaware of this generous tax rebate, or do not believe that the work they undertake qualifies.
We work with a diverse range of clients to secure R&D tax credits, including a building manufacturer who created a new style of installable false ceilings and several clients who have developed new software systems.
You may be surprised how many businesses do make claims each year. According to the latest provisional figures from the Government, the total number of R&D tax credit claims for the tax year 20/21 was 89,300. This is an increase of 7% from the previous year. This increase is driven by a rise in the number of claims within the SME sector, so small companies as well as larger firms should check their eligibility.
Who is eligible for Research and Development tax credits?
Companies of any size and operating in any sector can claim R&D tax credits for any eligible project, not just those companies in science and technology, which is a common misconception.
Companies that qualify must be UK registered and, from April 2024, the R&D work must be undertaken in the UK (with a few specific exceptions).
Which projects are eligible for Research and Development tax credits?
Work which qualifies for Research and Development Tax Credit must be part of a specific project to make an advance in science or technology (although the company itself is not required to work in science or technology). Research and development into pure mathematics now also qualifies.
Projects must relate to a company’s trade, or one that the company intend to start up based on the results of the R&D.
Is there a time limit to making a R&D claim?
Currently, claims can be made within two years of the end of the accounting period following the project’s completion date. This will change from April 2023, when there will be a requirement for many companies to pre-notify HMRC of a claim and the time limit is in many cases reduced to 6 months.
Companies will be required to notify HMRC, using a digital service, within 6 months of the end of the period to which a claim relates. Companies that have claimed in one of the preceding three periods will not need to pre-notify.
Therefore, it is vital that companies that may have already undertaken R&D eligible work or are considering doing so claim as soon as possible. Alexander & Co can act for clients and notify HMRC on their behalf.
How Alexander & Co assists with Research and Development Tax Credits
R&D tax credits are a valuable tool to businesses. Accurate, trustworthy advice is key to unlocking invaluable R&D tax relief and businesses undertaking R&D activities should not be deterred from using this resource.
We have been successful in securing robust R&D tax claims for many businesses across a wide range of sectors.
Please contact us for a no obligation consultation to discuss if any projects your business has completed or is looking to complete qualifies for these generous reliefs. Many companies are unaware how wide the scope is to claim this generous relief and miss claiming, this includes for work that they undertake on a day-to-day basis.
You can be sure you are in safe hands with Alexander & Co. We are regulated by the ICAEW and follow their professional conduct guidelines. The person preparing the claim will also be a Chartered Tax Advisor.
Unlike many companies, we take care of all the process regarding Research and Development tax claims. This includes conducting detailed analysis and writing all the accompanying reports to support the claim. All we require from a business is typically an hour or two with the relevant personnel, typically the financial director (or equivalent) and a member of the project team. Having dealt with numerous claims across many sectors, including IT, manufacturing and food processing we are already familiar with many industry sectors processes.
With an expert team of qualified tax advisors, you can be sure of accurate advice on which you can rely. With a proven record in securing R&D tax claims, we advise and assemble robust claims for clients.
If you would like to discuss how we can assist you, please do get in touch. We are happy to provide a no obligation, complimentary consultation to explore the best route forward for your business and check eligibility. Please email us at firstname.lastname@example.org or complete the enquiry form below to arrange a consultation.
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