If you’ve been involved in submitting an R&D claim before, you’ll know that its a bit of a complex process. It’s also quite time consuming if you’re completing the claim manually and without the right expertise and support.
It can be highly risky running the process yourself as the claims need to carefully assess that they correctly fall into the definition of R&D alongside HMRC’s guidelines and that the costs claimed against them are appropriate and measurable.
Businesses miss out on claiming R&D because of 3 main factors:
- They don’t realise they can claim
- The don’t claim for everything they qualify for
- They fail to adequately document the technical work undertaken in the R&D project
That’s why its important to have these 3 things in place:
- Expert knowledge on what businesses can claim
- Expert knowledge on HMRC’s guidelines on what you can claim for and for how much
- Efficient processes in place so gathering the information needed to submit a claim is accessible and accurate, otherwise a large amount of time is wasted to pull this together which impacts business projects and any delays receipt of R&D relief payment
Could You claim R&D Tax Relief?
R&D tax credits are awarded to a range of sectors innovating in some way, registered in the UK and can be claimed for activities like:
- Creating bespoke integrations between two or more tech platforms e.g. a CRM and a finance system
- Developing a new piece of software or algorithm to make a new device work or to make an off the shelf device perform a new function e.g. to program drones
- App developments or upgrades
- Completely custom-built platforms or bespoke modifications/integrations on off the shelf platforms e.g. CRM systems, payment systems, workflow management
- New data capture methods
- Creating smart device connections
Do you have any of these activities in your business? Then it’s possible this work qualifies for R&D relief.
Changes to R&D Tax Credits
There are 3 main changes happening that will come into effect for April 2023 claims, impacting the 2 years prior to the claim.
- Data & cloud computing costs will be included in qualifying expenditure
- There is a refocus on innovation based in the UK, meaning you can no longer claim for some costs outside of the UK
- New government plans to tackle abuse and improve compliance
If you’re not sure you qualify, we highly recommending finding out because it’s possible this work qualifies for R&D relief.
Here’s an easy to understand guide outlining the 3 changes. So if you’d like to learn more, here’s where you can download your copy:
Do You Have Any Questions on R&D Tax Relief Credits?
Would you like more assistance with understanding how to maximise R&D relief, particularly with some critically important legislative changes coming in this year?
We support our portfolio of clients in submitting successful R&D applications and help them get prepared, streamlined and informed so they can utilise this government incentive quicker and easier.
Get in touch for a free no obligation call to explore how R&D tax relief effects you.
Main Image Credit: Photo by Towfiqu barbhuiya