Joshua Odigie of Myriad Associates provides his top tips for businesses looking to make an R&D tax credits claim...
As you probably know, anything to do with tax is usually a long-winded, stressful process that is made even less enjoyable by the mountains of paperwork you often need to fill out.
This said, the last thing you want is to go through all the procedures only to find that your claim has been unsuccessful.
If you are thinking about going ahead with an R&D tax credits claim, be sure to read our tips on things to consider to ensure everything runs smoothly and you aren’t left disappointed.
Feeling overwhelmed and want to take some of the weight off your shoulders? An online tool will do a lot of the work for you, making the claim process a lot less stressful.
Are you eligible for a claim?
This is clearly the most important factor to consider when determining the success of an R&D tax credits claim. If your business does not meet what is required of it you won’t be successful when claiming back research and development costs from HMRC. Consider if your company is doing what it needs to do to support a claim of this kind e.g. developing a new product or service or adding to one that already exists.
Still struggling to get to grips with things? Try an eligibility checker, it will ask you three easy questions that will determine if you can make R&D claims.
How much is R&D tax credits worth?
Profitable SMEs can reduce the amount of corporation tax they pay on profits for the period, by the amount of the enhanced deduction. The current R&D tax credits rate results in a 26% benefit on R&D expenditure for profit making SMEs. Loss-making SMEs can receive a cash rebate from HMRC of up to 33.35% of eligible R&D spend by surrendering tax losses attributable to the eligible R&D expenditure. Our tax credit calculator will estimate how much you may receive from making an R&D tax claim.
What staff roles can be included in a R&D Tax Credit claim?
It is not uncommon for an R&D team to consist of many individuals from different parts of the business. Your R&D project team may include the R&D Manager, a Lead Developer, Engineers, Project Co-ordinators, CAD Engineers, Quality Control and Testing specialists, and Cost Accountants, as well as members of the senior management team.