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Why year-end is so important for R&D Tax Credit claims

Date: 14th February 2013

Well, it’s all about maximising your first claim.

You’re allowed to claim for your past two full years but, as soon as you slip over your current year-end, then you forfeit one of these.

Very typically, an R&D Tax credit could be worth £40k to an SME (This is the average claim size according to HMRC). By not claiming in time, you could easily lose half of this. What a waste!…..and just because you procrastinated.

How does it work?

Let’s say your business year-end is 31/03/2013.

By the rules, you can claim retrospectively for the year ending 31/03/2011 and for the year ending 31/03/2012, as well as for this current year. If you delay until April, well you lose all of the year ending 31/03/2011. Gone for ever, money left on the table, cash burned!

What should I do?

The best way to maximise your claim is to instruct your R&D Tax specialist to prepare a three year Technical Justification for the past two years and for your current year. This can be submitted by your accountant before the 31st March together with your financial claim for the past two years. (The claim for this year can be submitted later with your annual accounts)

The good news is that you’ll receive a cheque for your past two year’s claim, often within five weeks, and also…..you can look forward to a reduced corporation tax bill for this current year.

What does it cost to check whether I can claim?

It shouldn’t cost you a penny. A reputable R&D tax specialist will advise you whether you can claim for free. It just takes a phone call.

Win, win all the way….just by claiming your R&D Tax Credit in good time; and that’s why your year end is so important!

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