R&D tax relief can be claimed up to 2 years preceding the accounting period. To start the claim process one should enter expenditure details in “Full Company Tax Return Form CT600”.
For the claim you have to explain how your project meets the qualifying criteria of the claim. You have to provide details regarding how your projects are contributing to advancement in science and technology, what new addition have you made to the technology market, what uncertainties you faced and how you tried to overcome them.
You are required to provide the start and end date for the accounting period you are claiming, as given in the form you submitted and also your company’s Unique Tax Reference (UTR) number.
- Assessment and Eligibility:
The claim process starts with the assessment of your project to find how it meets the criteria of the claim to calculate tax refund/relief.
Information regarding all the factors contributing to R&D tax relief is gathered as the time spent on R&D activities accounts for the relief so it is important to look closely at each aspect to maximize tax reduction.
The report is tailored inculcating all the details of tax, accounting period, company’s UTR number, and revised tax computations.
The report along with supporting evidence is submitted to HMRC and within few weeks you will receive tax reduction as per calculations. A claim can cover a year or more but you have to submit a separate claim for each accounting period relating to R&D.
R&D tax relief is legitimate relief to facilitate and encourage innovation in the UK. Companies can also opt for the R&D credit, for loss-making companies it is preferred to claim for the credit so that the business can move on.
It is important to create a report very carefully and meticulously to avoid objection from HMRC to avoid these complexities you can seek advice from an R&D expert. R&D expert will not only guide you thoroughly regarding each step but also help you from the first step to the last so that you can receive maximum tax reduction or credit. For more information contact us.