How Far Back Can You Claim R&D Tax Credits
Introduced by the UK Government in 2000, the R&D Tax Credits incentive is designed to encourage innovation and increase spending on research and development (R&D) activities for companies operating in the UK.
Any company in any industry may be eligible for R&D Tax Credits. The key is that the company must be undertaking development activities that seek to achieve an advancement in technology. The project must contain a level of technical uncertainty for a competent professional, so if you faced questions that left you and your team scratching your heads to find a solution, that’s a good indication that qualifying R&D activities were taking place.
This article by RDT Active seeks to provide some clarity on the matter, passing information and providing tips on R&D Tax Credits. For more information, or more articles like this, be sure to check out our website.
Am I Too Late To Claim R&D Tax Credits?
If your team has been conducting work on potential products or services in recent years and have only just discovered R&D Tax Credits, you might be concerned that you’ve missed the opportunity to make a claim.
The good news is that it is possible to retrospectively file R&D Tax Credit claims with HM Revenue and Customs (HMRC) and you have two years from the end of your accounting period to submit one.
As an example, a company with a 31 December year end would be eligible to make retrospective claims for R&D tax relief for the periods ended:
31 December 2017 – time limit expires on 31 December 2019
31 December 2019 – time limit expires on 31 December 2021
When Can I Claim R&D Tax Credits?
Standard procedure for making an R&D tax claim is for you to submit your claim alongside the preparation and filing of your company accounts, and the submission of your CT600. It is not uncommon for companies to either forget – or simply be unaware of – the need to include the suitable documentation with these end-of-year accounts, and thereby miss out on the rewards for their R&D activity.
That being said, it is possible for such businesses to claim retrospectively for up to two years. This means that any backdated claims will be processed in one go, meaning that a significant injection of cash could soon be forthcoming into your business account, enabling you to reinvest and continue undertaking R&D work.
Can I Make A Backdated Claim For R&D Tax Credits?
Of course, as mentioned above, the process for making a successful R&D tax claim can be complicated, so it pays to sit down and discuss the circumstances of your claim with an experienced R&D tax advisor. Such experts have the knowledge and expertise necessary to help you prepare the documentation and collate the information needed to detail the associated costs.
Here at RDT Active we have built up a team of specialist consultants with real expertise in numerous areas of technology and are able to structure and present grant and funding applications and R&D Tax Relief claims authoritatively to maximise your benefit. Be sure to check out our website for any enquiries.