Guides: Claim thousands in tax relief before the year is out
Research and Development Tax Credits can help innovating businesses unlock thousands of pounds, either in Corporation Tax savings, cash or loss reliefs. So although you’re busy, it’s worth spending some time investigating what you could be eligible for.
Simply put; use it now or lose it.
You can claim for R&D Tax Relief for an accounting period within the past two years, meaning you can claim against qualifying expenditure incurred for the year ended December 2018 right up until December of this year. What’s more, if you’re making a claim for a period in which you’ve already paid tax, HMRC will issue a cash rebate; that’s cold hard cash you could be missing out on if you fail to claim before the end of the year.
The average claim value for SMEs is £63,000, so applying for R&D Tax Relief now could be the difference between just surviving, and moving into 2021 thriving.
For more about what R&D tax credits are and to check your eligibility, see our handy guide here.
What if I’m making a loss?
Even if you’re a loss-making business you should make that claim! With standard claims companies can deduct qualifying expenditure from taxable profits on tax computations, reducing Corporation Tax liabilities; where there is no Corporation Tax liability, there’s a possibility of surrendering R&D losses in exchange for payable cash credits.
In an email sent this April HMRC reiterated their commitment to clearing R&D claims by SMEs within 28 days, stating that extra resource has been allocated to help them achieve this.
Although we’ve seen some reports of turnaround times being accelerated, this hasn’t been confirmed by HMRC.
Why choose a specialist R&D Tax Relief advisor now?
1: To save time
When it comes to R&D Tax, specialist advisors are there to do the heavy lifting while you tie up everything else before December 31.
We have over a decades’ experience working with UK businesses and HMRC to make successful and fast relief claims.
2: To untangle the relationship between R&D Tax Relief and other financial support schemes
There are several routes businesses can take to benefit from R&D Tax Relief, and that can be confusing enough – especially for first-time claimants. When you add other Government support schemes like Coronavirus Business Interruption Loan Scheme (CBILS) into the mix some companies are dissuaded from even making a claim.
A full-service tax, accounting, and innovation funding advisory consultancy like MPA will have a complete picture of the innovation financing landscape and can quickly assess the best route(s) for you to take.
3: To ensure maximum claim value
Advisors who employ specialists from industries just like yours can talk directly to your experts and get under the skin of your research and development projects quickly, ensuring you’re claiming for everything you’re entitled to.
Our people come from a wide range of industries and roles so we can match you with someone who really understands your business.
4: For a pair of extra hands
As time is tight and R&D Tax is a niche area, appointing an advisor rather than processing relief claims in-house can be quicker and more cost-effective in most cases. Beyond that, we aim to build long-term partnerships with our clients, and hope you’ll come to see us as a trusted member of your financial team.
Ready to learn more about claiming?
Leave your details below and one of our experts will be in touch to hear more about your research and development projects, and to explore the potential value of relief you could claim for.