A newbie here so I hope someone can point me in the right direction.
A new client of mine has asked me to investigate Research and Development Tax Credits and how it all works. I've checked out the HMRC website and they don't really clarify whether you apply for it by submitting a form first or if the accountant would fill in the amount of tax credits being claimed on the CT600 at year end.
I've tried to phone HMRC but have lost the will to live as it seems they've all knocked off early. It's is Friday after all.
the first thing your client needs to do is work out if they qualify to make an R&D claim and what costs they have incurred.
On the tax side as you can go back 2 years (based on year ends) for R&D tax relief if it's for a period which has been finalised then they will need to fill in an amended tax return for that period showing the R&D figures, if it's for a period which hasn't yet been finalised you can put the figures onto the CT600.
The other thing your client should do is provide a breakdown of their expenditure and also write a report for the HMRC showing what projects they worked on and why they qualify for R&D tax relief, whilst you don't have to do either of these things they reduce the risk of an HMRC enquiry into your clients claim.
We offer our clients a service which includes qualifying if the client is performing R&D work, writing the report for the HMRC and helping work out R&D expenditure.
As some clients would prefer to use a 3rd party for their first few claims and then process them internally afterwards, we also offer training to clients on how to complete a successful R&D claim.
All our work is on a "no win, no fee" basis, so if your client does need any help with any of the above please drop me a PM and I can advise.
