Our R&D tax credit review process ensures our clients have claimed for all of the R&D they've conducted. We always conduct a full R&D tax credit review for new clients. In fact, when onboarding new clients who have previously claimed R&D tax credits, we've increased their claims by 110% on average.
The reviews take place in the form of a structured workshop. The work starts before the review, by ensuring the right attendees are available. The review workshop start with an analysis of all the projects a client has undertaken in previous accounting periods. The purpose of this analysis is to spot any projects where R&D may have taken place. Where R&D has taken place, the eligible costs are discussed in detail to determine what can be claimed. Generally - the review will take between 1 and 3 hours - but the results are worth it.
After the review, Zest will produce a summary of any projects and costs that can be claimed. Once any additional information required is provided, Zest can then finalise a claim document ready to be submitted to HMRC.
For more about our tax credit claims process - read on here.
Many don't realise that previous R&D claims can be amended. Any claim previously submitted can be amended up to 2 years after the end of the accounting period. That means, if you don't believe you got the best results with your R&D claim - you can re-analyse - and re-submit to get the correct results. This is something we often do for our clients.
After we met with this marine engineering company from South Wales, it quickly became clear that their previous R&D claim didn't cover all of their work. We worked with the client on a full tax credit review and the results were significant. We increased the clients return by 200%, giving them an additional £36,000 cash repayment, on top of the £18,000 they had previously received.
Getting the best results with R&D Tax Credits takes time, a good working knowledge of the legislation, and an eye for detail. In the example above, the previous advisors weren't in a position to dedicate the time to fully review the R&D conducted by the client.
So what should you look for in an R&D tax credit advisor, to get the best results? Keep an eye on this space, as I've got another post coming on just this.
If you're reading this and thinking you could be missing out, be sure to get in touch. Even if we're not able to make a claim for you, you won't be charged anything.
Find out how how companies can meet the deadlines for R&D tax credit claims and all the key R&D tax relief changes coming into place in 2023.
Costs involved in R&D are tax deductible and there are two ways in which R&D costs can reduce a companies Corporation Tax liability. Firstly – with the usual deduction of 100% of the cost from your companies profits. In addition, the R&D Tax Credit scheme allows a further deduction of 130% of eligible R&D costs, […]
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%, […]