Claiming the payable tax credit for research and development (R&D) costs can be very useful for small companies, but HMRC are aware that there are many invalid and inflated claims in this area.
From June 2022 HMRC has been making additional checks on each R&D claim, which means the process takes up to 40 days. If you are worried that your claim has been overlooked, you can check your company’s online business tax account to find out the status of the claim.
To speed up new R&D claims, HMRC will want to see an R&D report submitted alongside the CT600 form.
From April 2023 the rules are changing, such that R&D claims cannot cover expenses incurred on subcontractors located outside the UK. The R&D report will also be mandatory; currently it is optional.
Companies that have not made an R&D claim before will have to tell HMRC, within six months of their accounting period-end, of their intention to make a claim.
Let’s talk about whether you could be eligible to claim under the small company R&D scheme.
