What is Research & Development (R&D) Tax Relief? —
R&D Tax Relief is a HMRC 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.
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, covering all sectors in making successful 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.
Our Process —
The team at CBTax have worked with HMRC for many years, we know what they need to see to understand your innovative activities and ultimately process your claim – this is why we have a 100% success rate. Our approach is robust, proactive and we deliver.
Which R&D Tax Relief scheme does my company qualify for? —
There are two R&D Tax Relief schemes. The scheme applicable will depend on whether the business is an SME or a large company.
- Less than 500 staff;
- Not more than €100m turnover;
- Not more than €86m gross assets.
Large Company Criteria
- 500 staff or more; and either
- More than €100m turnover; or
- More than €86m gross assets.
Most companies will fall under the SME criteria. There will also be instances where a company is transitioning between an SME and large company. Our specialist team of Chartered Tax Advisers will clarify this with clients during our initial meetings.
Check out some of our frequently asked questions below —
What qualifies as R&D expenditure?
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 HMRC.
How far back can I make a claim for R&D Tax Relief?
Claims can be made as far back as two full financial periods.
Can I submit a claim by myself?
The R&D claim forms part of your corporation tax return so yes you can make a submission yourself. However, we strongly recommend against this as incorrect submissions can be costly in the form of penalties and also the tax legislation is complicated and should be prepared by Chartered Tax Advisors who have an understanding of the legislation.
My accountant says they could make the claim for me?
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 HMRC 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.
My company is loss making, can I still make a claim?
Even companies that have made a loss can put a claim forward to HMRC. This will enhance the loss further and could be carried forward to offset against future periods or even surrendered for a cash credit from HMRC.
Why use CBTax?
CBTax are specialists in preparing R&D Tax Credit claims. Not only are we also Chartered Tax Advisors but we are lead by Finance Monthly’s Corporate Tax Advisor of the Year 2018, Chris Beale who has been recognised for the work he delivers to his clients.