7 R&D Tax Credits Tips – Don’t Miss Out!

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Here are 7 tips on how you can ensure that you make the most of your claim for R&D tax credits.

  1. Don’t assume your company doesn’t qualify for R&D tax credits – even if your accountant has discounted it or perhaps not even mentioned it (in fact that might be all the more reason to check it out!)
  2. It doesn’t matter whether your company is profitable / tax paying or loss-making – R&D tax credits relief can benefit you and release cash into your business in either case
  3. Think about R&D tax credits relief and how it might apply to your company as early as possible – This way you can ensure that you are capturing relevant supporting information, documents and costs as you go – rather than trying to cast your mind back and rebuild retrospectively which might lead to sub-optimal claims
  4. Don’t discount R&D tax credits claims if you carried out eligible activities a couple of years back (thinking you’ve missed out) – you can make retrospective claims for accounting periods ended in the past two years. So at the time of writing this post (20 June 2016), say you have a 30 September financial year end, then the periods ended 30 September 2014 and 30 September 2015 are still open and eligible for R&D tax credit claims.
  5.  Don’t wrestle with the definition of what activities qualify for R&D tax credit relief on your own – many companies wrongly count themselves out when a quick chat with a R&D tax specialist might have helped them understand how they do qualify. Many company owners are stunned at the breadth of the R&D tax relief.
  6. Don’t think you have to leave your current accountant to access specialist R&D tax advice – most R&D specialists (like us :))will supplement the good work your accountant is already doing for you with their specialist R&D tax services so this needn’t upset your ongoing accountancy support relationship.
  7. Think about how the UK R&D tax incentive can fit into your overall funding profile – tax advantaged funding such as SEIS / EIS can typically be used in harmony with the R&D tax incentive. Watch out for grants as these can impact adversely on the levels of tax relief available under the R&D tax incentive. Cash tax breaks such as the Patent Box can be used alongside the R&D tax relief. As you can see, thinking about how this can all fit together sooner rather than later will help optimise available funding.