Research and Development (“R&D”) tax relief is a government initiative to support businesses investing in innovative activities. There are two R&D tax relief schemes that companies can claim under – the SME scheme and the large company or RDEC scheme. Both are beneficial to companies in either reducing a tax liability or creating a payable tax credit.
The claim for R&D tax relief is included within the company’s Corporation Tax return that gets submitted to HMRC.
The deadline for claiming R&D tax relief is two years from the end of the accounting period in which the R&D was undertaken. For example, if your company carried out R&D activities in the period ended 31 December 2017, the claim is required to be submitted by 31 December 2019. Although a Corporation Tax return’s filing deadline is one year after the accounting period end, a return can be amended to include an R&D tax relief claim.
By preparing and submitting an R&D claim as early as possible, this will help to maximise the claim and ensure the company receives the benefit of the claim as early as possible.
If you have a qualifying R&D project in the years ended 31 December 2017 and 31 December 2018, we can help your R&D claims in advance of the year end.
How can AAB help?
- Establish whether your company qualifies for R&D tax relief;
- Provide advice on the requirements for supporting documentation and records;
- Work with you to prepare and submit claims to HM Revenue & Customs.
By Andrew Blair, Corporate Tax Senior Manager at Anderson Anderson & Brown LLP