Is there a time limit on claiming R&D tax credits?
If you and your business have been busily involved in research and development activity, it can be easy to overlook such matters as making your R&D tax claims. Either due to lack of awareness, uncertainty over eligibility, or being dumbfounded by the complexity of submitting your claim, missing the deadline for the qualifying period could well see your business missing out on thousands of pounds that is rightfully yours.
However, there is good news for those businesses that may have overlooked submitting their claim at the end of their financial year: claims can be filed retrospectively.
When to claim
Standard procedure for making an R&D tax claim is for you to submit your claim alongside the preparation and filing of your company accounts, and the submission of your CT600. It is not uncommon for companies to either forget – or simply be unaware of – the need to include the suitable documentation with these end-of-year accounts, and thereby miss out on the rewards for their R&D activity.
That being said, it is possible for such businesses to claim retrospectively for up to two years. This means that any backdated claims will be processed in one go, meaning that a significant injection of cash could soon be forthcoming into your business account, enabling your to reinvest and continue undertaking R&D work.
Making backdated claims
Of course, as mentioned above, the process for making a successful R&D tax claim can be complicated, so it pays to sit down and discuss the circumstances of your claim with an experienced R&D tax advisor. Such experts have the knowledge and expertise necessary to help you prepare the documentation and collate the information needed to detail the associated costs.
By working with R&D tax specialists, you will be able to reclaim on average 25% of the expenditure on costs such as staffing, outsourcing and sub-contracting, consumable materials, software licences, and much more, all for a period of two years previous. With the average claim estimated to be in excess of £60,000 per year for applicable costs, such a cash injection will undoubtedly serve your business well.
It’s (almost) never too late to claim
As you can see, the opportunity to backdate a claim for missed R&D tax credits should provide peace of mind that your business will still be able to benefit from such rewards, even if you failed to submit details alongside your end-of-year accounts. While it is only a two-year limit on retrospective claims, it presents a great opportunity to keep your business on track for greater success.
To find out more about making a claim for R&D tax credits, or to discuss whether your business and research activity qualifies, simply get in touch with the team at R&D Tax Solutions today. We’ll be happy to support you in your application, and help you determine the likelihood of success for making a claim.