Once you have entered the required information into our platform, we can then prepare a claim within a day (instead of more than 4 weeks with other advisors). After the claim is submitted, HMRC aims to process 95% of claims within 3-4 weeks, however, they do not always keep to that timeline. By using EmpowerRD Now you can avoid that wait and receive your R&D credit as soon as your claim is submitted. Ask your EmpowerRD advisor for more information.
You can claim for your current period and two historic financial periods. For example, you could claim as late as March 2021 for the financial year ending on March 2019.
You can still claim if you have received a grant, however, it will usually mean that some of your claim will be filed through the RDEC scheme. The way your R&D tax credit is calculated will depend on the nature of the grant. Our team of R&D claims experts can advise you on the appropriate treatment for your specific situation.
No. The credit or tax deduction can be used in any part of the business. HMRC recognises that the best investment for a company can sometimes be in areas other than research & development. Either way, more money is available to innovate.
Yes. HMRC call it “surrendering” the loss. This means that any loss generated can be surrendered for cash received by the scheme. In effect, this means that the loss is not carried over to future years, instead you get the cash for your R&D costs immediately.
R&D Tax Credits are not clear-cut and the boundaries can change frequently, making it difficult to keep up to date with HMRC’s expectations. It’s a relatively complex field where solid understanding and experience makes a difference. Most accountants can’t and shouldn’t be expected to be experts in technology, it’s not their job.
If you’re ever in doubt about whether you’re eligible for R&D Credits, it’s best to contact a specialist for a free consultation. We can give you a definitive answer which your accountant may not be able to provide unless they have internal R&D Tax Credits specialists.
A whole host of industries can claim R&D tax credits. Essentially, any company which is solving scientific or technological uncertainty could be eligible to claim back the costs on their R&D projects.
The most common industries are manufacturing, software and IT. The list can also include (but is not restricted to) industries such as engineering, food and drink, pharmaceuticals and agriculture.
Yes. If your company has conducted R&D during the year then you can make a claim with HMRC.
However, It’s important to note that the technical narrative for each claim should change to match the evolution of the developments that you’ve undertaken in the latest year.
Fortunately, it is not necessary to refile your accounts should you wish to make a claim for a previous year's accounting period. You can simply attach an amendment relating to that previous year when you submit your current year’s accounts.
No, as of April 2012 there is no minimum amount that can be claimed through the scheme. However, it is worth considering if the time investment required to make an R&D claim is worth the expected return from the credit.
Typically no. Research and development tax credits are only available to businesses that pay UK Corporation Tax. However, if your LLP is performing R&D as part of a corporate partnership, then you may be eligible for the qualifying activities relating to that partnership. Speak with us to discuss this in more detail.
This depends on whether HMRC decides if due care or attention was given to the claim. If the error results from negligence in the preparation of the claim then you may be required to make a cash payment equivalent to the estimated tax loss to the UK Government.
The online claim service can help you to prepare a robust claim if you self-file. However, it is not a complete claim service. It provides a format to collate the supporting documents required for your claim. However, you’ll still need to have identified your qualifying projects, the corresponding R&D expenditure and the amount of any R&D tax relief or cash credit due.
It is still viewed as qualifying expenditure, however if you're applying through the SME scheme you can typically claim for 65% of the cost of the subcontractor. The 35% remainder is viewed by HMRC to be the profit margin of the subcontractor. If you’re claiming through the large company (RDEC) scheme then additional rules apply.
This can get complex and the difference can often become blurred so we recommend speaking with an experienced advisor if this issue is relevant to you. In general however, an EPW is akin to agency staff working under your business’s direction, whereas subcontractors work relatively autonomously and are hired as experts in their fields.
Yes, they can. You can claim for the pension contributions related to the pay the staff member received for the R&D activities they performed. You can also claim on the relevant NI contributions and some reimbursed business expenses.
Software Development R&D Tax Credit Claims
Key insights into claiming R&D tax credits for software development projects.
RDEC Scheme Guide
The complete guide to compiling and submitting an RDEC claim. Includes an explanation of differences between the two schemes.
Clarifying the Impact of CBILS on R&D Tax Credits
How the government's Coronavirus loan scheme affects your ability to claim.
Which costs qualify for R&D?
A breakdown of the types of costs that can be included in your claim.
EmpowerRD Covid-19 response
How we're helping businesses with their cash flow during the downturn.
Which scheme should I apply to?
Understand how your business's financial profile affects which scheme you need to apply to
Is my business eligible for R&D tax credits?
Find out if the activity undertaken by your business can qualify as R&D.
How much can I claim?
Read how different accounting positions can affect how much you're able to claim.
What evidence is required to make an R&D claim?
Learn about the different pieces of evidence required for different R&D costs.