R&D Answers: What Is The Claims Process For R&D Tax Credits?
Date: 4th March 2012
What Is The Claims Process For Research And Development Tax Credits?
The claims process is part of the normal treatment of providing the necessary annual accounts information to HMRC, and the qualifying expenditure should be shown as an adjustment to the profit figure on which tax is calculated.
Only the qualifying figure is needed for tax purposes, but you should maintain a record of how that figure has been calculated, and be prepared to show back up documentation such as payroll and invoicing information.
As instructed by the HMRC web site you should also submit an explanation of why the work qualifies as R&D by describing the projects, explaining why they represent advances in science or technology, what the scientific and technological uncertainties were and how and when they were resolved. These explanations should be in layman terms.