R&D Tax Credits are government-backed incentives for innovative businesses with the relief often worth around a quarter of qualifying spend on R&D.
A company can make a claim for R&D tax credit relief for any accounting periods ending in the past two years (24 months). Before this period ends you must submit an (R&D) tax credit claim for any qualifying expenditure that you’ve identified during that period.
As an example, the 24-month deadline could look like this if you had a 31 March year end.
The same deadlines apply for amendments to previous claims – which can be changed up to 24 months after the end of the accounting period where the R&D took place.
When a new client signs up with Zest, one of the first things we do is look back at their previous two years of accounts and improve any existing claims. On average, we have increased tax credit claims by 110% because we know how and where to find the potential of your R&D tax claim.
Any activity where your business has done work to try and improve the knowledge in your field could qualify for R&D tax credits. That could be improving a product you sell, designing new software, or testing new business processes to better understand your industry. If you have spent on any of the following groups of costs they will be eligible for R&D tax credits:
Identifying qualifying R&D activities for the R&D tax credit can be challenging for both large and small businesses. Schedule a free consultation with our team of experts to learn more. We’ll discuss R&D tax credits and help you determine if our services are a fit for your company.
Find out about the upcoming changes on August 8th 2023 of submitting an additional information form to HMRC to support R&D tax credits claims.
Understand HMRC enquiries and compliance checks for R&D tax credit claims. Learn what triggers an enquiry and how to avoid getting an enquiry.
Discover how Green Steel, a recycling specialist secured an impressive £250,000 in Research & Development (R&D) Tax Credits.