The general rule is that UK businesses can only claim one form of State Aid - this could include Covid support, R&D Tax Relief, and even some Grant Funding. This means that you need to be quite selective with how you utilise Government schemes that are considered State Aid.
To qualify for R&D Tax Credits relief, the project needs to be seeking an advance in science or technology by the overcoming of scientific or technological uncertainties. In addition, the resolution of these uncertainties must not be readily deducible by a competent professional working within the field.
In summary, the preparation of your claim and subsequent processing by HMRC generally takes around 12 weeks, depending on the claim size and time of year. However, if your R&D Tax Credits claim is selected for a compliance check or enquiry, then it could take substantially longer!
The R&D tax credits SME and RDEC schemes are both based on an adjustment of the Corporation Tax payable. The filing deadline for company accounts is 12 months after the financial year end and most companies will be able to go back two financial years.
As a business who has eligible R&D expenditure to claim under either the SME or RDEC scheme (or both), you will have calculated your eligible R&D expenditure; but how do these numbers actually generate you a tax or payable credit?
The costs associated with protecting your Intellectual Property (IP) cannot be claimed in a UK R&D Tax Credits claim, however significant costs relating to the generation of that IP can. These include R&D staff, materials, software and subcontractor costs.
At TBAT, we're an R&D tax credits specialist. Our R&D Consultants are all experienced engineers or scientists who take a real interest in your R&D projects.
The R&D Tax Credits schemes were designed to be applicable to any industry that is undertaking R&D, meaning that the same set of rules apply to the textile and software industries as they do to biochemistry and subsea industries!
A huge array of R&D qualifying expenditure can contribute to an R&D Tax Credits claim, and eligible or qualifying activities will vary widely depending on the nature of the industry in which R&D is being conducted.
The R&D Tax Credits Technical Report, which is submitted to HMRC is compiled to evidence the financial R&D Tax Credit claim. It provides HMRC with a summary of the financial claim, in line with what is submitted with the CT600 and included in the Tax Computation, and details the eligible R&D projects that were ongoing throughout the claim period.
Assists organisations in accessing research and development grant funding across a range of UK and EU schemes and industry sectors.
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