Claims
R&D Tax Relief and how to claim
Staff costs
An appropriate percentage of those doing the development work and those planning and supervising the project, including salaries, bonuses, NIC, pension, benefits and reimbursed expenses.
Software licenses and other IT costs
Software licenses and other IT costs – if used for the development project.
Subcontractors and externally provided workers
Sub-contractors and externally provided workers – 65% can normally be claimed, but can be 100% if under the same control as the main company.
Some overheads
Some overheads – a proportion of utility bills if paid directly to the provider.
HOW MUCH CAN YOU CLAIM?
The R&D Estimators below will give an estimated benefit that is only based on your R&D expenditure, and may overstate the benefits.
The Beavis Morgan R&D Tax Relief Calculator will give a much more accurate indication as it takes account of profits and losses.
If zero benefit is shown, the company’s losses carried forward are increased to use in future years. A claim can be made for each of the last two accounting periods.
WHY SOME COMPANIES DON’T CLAIM
HOW THE CLAIMS PROCESS WORKS
At Beavis Morgan, we have successful track record of claims for businesses across a range of sectors. We can help you with all aspects of your R&D Tax Relief claim in 3 easy steps.
STEP 1
Discuss
Initial meeting
- This free consultation with you scopes the claim and ascertains whether you are eligible. (Approx. 1 hour)
Technical review meeting
- We hold a second meeting with you to discuss the technical aspects of the claim. (Approx. 2 hour)
Report drafting
- We prepare a robust report which is sent to you for approval.
STEP 2
Extract
Cost information
- We meet with your technical guys to identify and capture expenditure on qualifying activities (Approx.2 hours). Following this meeting, we compile a cost information sheet.
- We minimise the risk of rejection and reduce the complexity of the claim by ensuring that all activities and expenses are mapped against the correct clauses within the tax legislation.
Submitting your claim
- We complete the Company Tax Return form (CT600) for you. If you’ve already submitted, but we find that you could in fact be eligible for more tax relief, we will produce an amended return.
- The form is be submitted to HMRC who will process the claim.
STEP 3
Liaise with HMRC
- By liaising with HMRC on your behalf, we maintain their focus on delivering your tax relief or tax payment in the prescribed timeframe.
- We will then arrange a review meeting with you to discuss the claims process, its outcome and how future claims can be made and enhanced.
HOW LONG DOES IT TAKE?
THE PAYMENT METHOD DEPENDS ON YOUR PROFITABILITY
Loss making companies
A payment from HMRC usually takes 3 – 6 weeks. Instead of receiving payment, you could elect to carry the benefit forward for future use.
Profitable companies
A payment from HMRC if you have already paid the tax, or a reduction or elimination of any liability you have yet to pay.
Companies moving from loss to profit
A combination of the loss making and profitable companies or, in a few circumstances, an increase in losses available to carry forward.