A number of clients have been contacted by companies offering to complete Research & Development tax credit claims on their behalf. R&D claims offer valuable additional tax relief on expenditure which qualifies as part of an R&D project.
The type of expenditure that qualifies is limited and clients should review HMRC guidance to form an opinion as to whether expenditure does qualify. Because of the enhanced tax relief (giving an extra 130% tax relief on qualifying expenditure) there is obviously a temptation to proceed with claims, but it is the taxpayer’s responsibility (not the advising company) to ensure that any claim is appropriate.
Please click here to see HMRC’s notes on the rules. We would draw your attention to pages 11 & 12 which attempts to define what ‘projects’ HMRC believe qualify for the tax credit.
Some of the narrative used is not particularly helpful. However, if you think certain of the work you complete may qualify then we would suggest the option to apply for ‘advance assurance’ is used. Please click here for further information.
We can deal with advance assurance applications and any subsequent R&D tax credit claim on your behalf so please do contact us should you require any further guidance or assistance.
For more complex cases we will be making use of the specialists at our external consultants CronerTaxwise. For more details visit.
https://www.cronertaxwise.com/consultancy/research-development/
