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.
Chancellor Jeremy Hunt has announced a series of changes to the UK research and development (R&D) tax relief regime, including a cut to the deduction and credit rates for the SME scheme, the R&D tax credit. The rate of the large company scheme, the R&D expenditure credit (RDEC) will be increased from 13% to 20%, […]
HMRC has recently set out its upcoming reforms to the R&D Tax Relief schemes that will form part of the next Finance Bill. Alongside some minor legislation updates to address anomalies in the schemes, the reforms as they stand will cause four major changes to the schemes. The first of which could catch out start-ups, […]
If your company has been making a loss, it’s still worthwhile making a claim for R&D tax credits. This is sometimes misunderstood with people thinking that a company needs to be profitable to benefit. In fact, applying for R&D tax credits as a loss making company might be the most beneficial way to get the most from the scheme.