What is R&D tax relief?
R&D tax relief is a government initiative that allows any company who is subject to UK Corporation Tax to claim back a portion of their tax liability in relation to money they have spent on areas of their work which can be classed as research and development.
An increasing number of companies around the UK are becoming aware of their potential to claim for R&D tax relief. A successful claim will be dependent on your ability to gather evidence of your R&D activities and then present in a suitable format to meet R&D tax relief expectations.
Table of Contents
- How do you gather evidence for an R&D tax relief claim?
- Do you need full records of activities and/or spending?
- What are R&D qualifying activities?
- Which businesses can claim for R&D?
- Our experience with R&D tax claims
- Can you still claim if you outsourced your R&D activities?
- Why is it important to use an R&D tax credit specialist?
How do you gather evidence for an R&D tax relief claim?
Essentially, in order to qualify for R&D tax credit, your claim needs to demonstrate to HMRC that your research is not only technologically innovative, but also ahead of other options currently available.
That’s where our experts here at Cowgills come in. We take full responsibility from beginning to end; visiting you, gathering evidence, putting your claim together and answering any questions raised by HMRC.
All whilst making the process simple, minimising disruption so that you can concentrate on running your business.
We have a wealth of experience in dealing with R&D tax claims, with many of our team having worked in the field since the inception of R & D claims in the early 2000s.
Do you need full records of activities and/or spending?
If your records are incomplete, this can certainly be a challenge to a successful claim, but don’t give up quite yet! Our team of R&D tax relief specialists will be able to review whatever evidence you currently have, and provide an assessment on whether it meets the HMRC criteria.
It is also worth noting that if this is your first claim for R&D tax relief, they can often be slightly more lenient in this area.
Our team of R&D tax credit specialists will be able to discuss a potential claim on your behalf, basing it on a “reasonable assessment” with regards to time estimates in relation to R&D tax relief qualifying activities.
What are R&D qualifying activities?
There are a range of different activities and spending which could qualify for inclusion in a claim for R&D tax relief.
As mentioned above, an R&D tax relief claim will not only have to provide evidence that such activities took place, but also that they provide a level of innovation and/or advance current available options.
Our team can help you identify ways in which this took place, but in basic term, activities that could qualify for receiving R&D tax credit include:
- Creating a new product
- Creating a new process
- Creating a new service
- Improving an existing product
- Improving an existing process
- Improving an existing service