Claiming for an R&D Tax Credit can be a long and complicated process. However, planning ahead can make the whole process much easier.

We’ve all been guilty of it, we rush into a new project trying to find new ways to complete a job, and it’s only once the job is complete that we think about R&D Tax Credits and how much we can claim back.

While hindsight is 20-20, memory is funny, as what we remember might not be what happened. So, it is better to be prepared and consider your claim before and during your R&D project. Keeping a record of the project and how it progresses can help you when it’s time to claim. Read more to find out how.

Who Can Claim R&D Tax Credits?

Research and Development tax credits can be a welcome relief to companies investing in developing scientific or technological advancements. The relief is open to all UK companies, regardless of size, but has to be registered for Corporation Tax in the country. Unfortunately, public liability companies, partnerships, and sole traders can’t claim R&D tax credits.

Planning Ahead Can Means You Can Get Help from Experts Before Starting

It’s surprising how many claims we see that are small companies qualifying for thousands of pounds in relief. However, that is because we have helped them put together an outstanding R&D claim, backed up with expert advice.

The best way to get the most out of your claim is by exactly understanding which costs can and can’t be included in your claim. This can be the secret to getting a successful claim. R&D tax specialists, such as us here at TS Partners, will help you understand the application criteria and be able to help you maximise the technological/scientific uncertainties you may have found during the project.

Record-Keeping from Start to Finish

By keeping a record of your R&D project from beginning to end, both details and costs, you will be helping to maximise your tax relief claim. The more detail you have regarding the project, the better your claim.

The technical narrative is the most important part of your R&D tax credit claim. This narrative describes your project in detail and needs to answer the following questions:

• What is the purpose of your project?
• What outcomes did you hope to achieve?
• What scientific or technical advances were made?
• How will your project benefit not just your company but the broader field?
• Would it have been challenging even for professionals in your field to solve the problem easily?
• Was the project a success or failure, and why?
• What research, testing, and analysis took place during the development process?

Many of us struggle to remember what we did last week, so trying to remember what happened months ago, especially in detail, can be a real struggle. When trying to devise costs in retrospect, it’s easy to miss details and expenses, losing money from your tax relief.

Your records don’t have to be perfect, but understanding what is required from your R&D project and making notes of the relevant information through the endeavour can significantly help your chances of a rebate.

Plan an R&D Roadmap

Planning a roadmap is an extremely effective way to avoid leaving your R&D tax relief claim to the last minute. Not only can it help you identify relevant claimable costs, but it also helps you keep track of what projects you do, how and why.

We have all been guilty of letting long-term projects get forgotten in our daily routine. The stress of running a business can mean our R&D claim falls down the priority list.

However, with a roadmap, you’re forced to consider your R&D projects and what you want to achieve, as well as relating potential costs to a tax claim. Keeping documented thoughts and records will help you formulate a plan, communicate your goals, and make for a high-quality technical narrative, thus increasing your chances of a successful claim.

Remember, though, that circumstances, costs, budgets and objectives can all change during the length of a project. That’s why it’s important to keep your roadmap updated with any significant changes.

Is R&D in Your Future Plans?

If you are planning to undertake an R&D project or believe you already have either begun or completed one, our R&D Tax Experts at TS Partners are more than willing to help you.

We can help you understand what costs and projects qualify, and even submit a complete claim on your behalf. We take away the stress of claiming tax relief through either the SME or RDEC schemes. 

Don’t hesitate. Contact the experts today!