How to make a successful R&D Tax Credit Claim
Date: 15th November 2016
HMRC are very supportive of correctly presented Research and Development Tax Credit claims.
A strong claim requires just three elements:
- A technical justification
- A summary of the qualifying costs being claimed
- A completed CT600 form
Correctly presented, the claim will normally progress smoothly, usually within 28 days of submission by your Accountant. Badly prepared and there will be delays, questions from HMRC and a possible rejection.
So what are the Common Mistakes?
- Errors in computation in your favour.
- Claims for costs that do not qualify.
- Poorly written R&D Technical Justification documents.
- Poorly explained scientific and technological advances.
- Poorly explained scientific and technological uncertainties and explanations of how resolution was attempted.
- Lack of explanation of why those uncertainties could not be “readily resolved by a competent professional working in the field”.
- Claimed qualifying costs, which seem way in excess of industry norms and cannot be justified.
How can you avoid these types of Errors?
Engage a reputable R&D Tax Specialist to advise you on your R&D Tax Claim. A competent specialist can identify and readily scope out the correct value of your claim and, there really shouldn’t be any charge at all for this service. Only then can you make an informed decision about claiming and how to do it.
If you should be claiming, the RandDTax specialist will help you to write the technical justification, will advise you on what does and doesn’t qualify, will clarify what costs should be included and will support you should there be any questions on your claim.
Jaime Lumsden, Director