Updated: Nov 22
Welcome to the Approved Finance Group article, your comprehensive guide to R&D Tax Credits and the Approved Tax Claim process. In today's ever-evolving business landscape, innovation and research play a pivotal role in driving growth and success. Understanding how to leverage R&D Tax Credits and navigate the intricate claim process can significantly impact your company's financial health.
Join us as we delve into the intricacies of R&D Tax Credits, explore the benefits they offer, and provide invaluable insights into successfully submitting an Approved Tax Claim. Whether you are a small startup or an established corporation, this article is your go-to resource for unlocking the financial advantages of your research and development endeavour's.
Table of Contents
FIRSTLY... WHAT EXACTLY ARE R&D TAX CREDITS?
In 2000, the UK government introduced R&D Tax Credits to encourage scientific and technological advances - they would then reward businesses that invested in innovation. However, only 20% of eligible businesses claim this relief scheme. You may be carrying out qualifying R&D activity if you; Design New Products, Develop New Services, Create New Processes, Adapting Existing Processes or focus on Product Innovation.
WHAT ARE THE R&D TAX SECTORS?
As with the type of activity carried, out HMRC has broad criteria for what qualifies as R&D in many industry sectors. If your business is investing in finding solutions to scientific and technological problems, you may be carrying out a qualifying R&D activity.
Please contact our specialist team if you believe your business may be carrying out R&D activity.
WHAT IS THE APPROVED R&D TAX CLAIM PROCESS?
STEP 1: DISCOVERY AND ASSESSMENT
Your dedicated ATL point of contact will work with you to identify the information needed to start your claim. Our specialist in-house team of advisers, technical consultants and industry sector specialists have extensive knowledge of the R&D Tax Credit scheme.
STEP 2: INFORMATION COLLATION AND ANALYSIS
Our specialist in-house team will give you the strategic advantage in identifying qualifying R&D within your business. We will work in tandem with your business to collate all the information needed to submit a successful claim through a tailored approach.
STEP 3: BUILDING YOUR R&D TAX CREDIT CLAIM
We will build your claim and add the required evidence needed for HMRC. This will detail how your qualifying activities and associated costs have been assessed and the total R&D tax credit benefit. Our compliance measures will ensure you have a claim with strong foundations.
STEP 4: APPROVAL AND SUBMISSION TO HMRC
You will receive our reports for your approval. The reports will contain a breakdown of our findings and analysis. We will then finalise our report package and file your tax credit claim in conjunction with your Corporate Tax Return (CT6000).
STEP 5: COMMUNICATION WITH HMRC
After the submission of your claim, we will continue to liaise with HMRC on your behalf to ensure a streamlined process. Our team will provide the necessary support and keep you up to date throughout the final stages of your claim.
STEP 6: RECEIPT OF BENEFIT FUNDS AND REINVESTMENT
Your benefit is awarded for investment in innovation and your Corporation Tax Bill will be reduced or your cash benefit paid into your bank account. The Approved group can also facilitate the further investment in new equipment and projects to fuel further growth.