R&D Tax Relief is a corporation tax incentive designed to encourage and reward companies of all sizes and all sectors who are engaged in innovation. The advantage of making a claim is a cash benefit to the company which can be as much as 33% of the qualifying expenditure identified, depending on location and tax authorities.
There is a common misconception that only companies with teams in white lab coats will qualify however this is far from reality. Regardless of sector, if a company is spending money on research and development then they may be eligible to claim R&D Tax Relief. CBTax support thousands of companies across the UK & Ireland, covering all sectors in making claims. Our experienced team can identify whether a claim could be possible that could fuel your desired growth plans, whether this is to support further innovation, purchasing an asset or profit extraction.
There are lots of areas that could qualify for relief, from creating a new product to making an appreciable improvement to an existing process. Most companies will see the qualifying projects as something they just do and therefore it usually takes our team of Technical Specialists to ask some questions to identify whether it is something that we could put forward to your tax authorities.
Claims can be made as far back as two full financial periods in the UK, in Ireland claims can be made back as far as 12 months.
Yes, even if your company is currently experiencing losses, you may still be eligible to claim for R&D tax credits. The R&D tax credit is not restricted to profitable companies. In fact, it can provide valuable support to businesses that are investing in innovation and research activities, regardless of their current financial status. It's important to assess your company's R&D activities against the eligibility criteria outlined by your tax authorities to determine if you qualify for the tax credit. As Chartered Tax Advisors specialising in R&D Tax Credits, we can assist you in navigating the requirements and maximising your claim potential.
Making a claim is not a numbers exercise. We undertake reviews on behalf of clients on work prepared by accountants and this usually would not be sufficient to submit to the tax authorities or is either incorrectly prepared or has not been maximised. Usually, accountants are not qualified Chartered Tax Advisors so although they may be in a position to prepare year end compliance, they are not best placed in providing tax advice.
Absolutely, you have the option to submit an R&D claim yourself as part of your corporation tax return. However, we believe it's crucial to engage the expertise of Chartered Tax Advisors who possess a thorough understanding of the intricacies involved to avoid costly penalties resulting from inaccuracies. Submitting a technical report alongside your R&D claim isn't obligatory, at CBTax, we ensure that every claim we handle receives meticulous technical planning and support. We prepare robust technical reports, ready for submission to your tax authorities, to ensure compliance and maximise the effectiveness of your claim.
