When RDP Associates speaks with companies that are looking to claim R&D tax credits and/or are unhappy with their present R&D Tax Credit service provider, many of them ask the same question “What could impact my R&D Claim”?
More often than not, we advise them that determining and including which projects are eligible is the biggest challenge. Specifically, if you are identifying and submitting R&D projects that are not considered eligible, will raise red flags with HMRC. Other areas that may impact your R&D claim can include activities you have deemed eligible to include as costs in your R&D tax credit claim. In addition to how the taxpayer’s claim and its formatting meet HMRC’s filing requirement.
When it comes to your R&D Tax Credit claim, there is no guarantee that HMRC will not make an enquiry; however, there are many ways that one can ensure the likelihood is minimal.
When it comes to R&D tax credit claims and especially if you are preparing it yourself. You may want to consider why it might be a good idea to have a service provider! But do you keep (What is Your R&D Tax Incentive in Hiring an R&D Tax Credit Specialist? (rdpassociates.co.uk)) asking yourself – is this the type of provider that works best for you? (Why It’s Hard to Pick the Right R&D Tax Credit Provider RDP Associates).
Best Practices to Ensure Your Claim is not Negatively Impacted:
Are you determining which projects are eligible or is someone asking you to do so?
- Are you 100% confident that you are not including projects and costs that are considered routine?
- What type of data (if any) do you have to support what you are claiming?
- Determine who the best person is to develop your supporting documentation.
- If part of a Group of companies, determining which companies are entitled to make a claim.
- Reviewing contractual agreements that ensure you are able to claim the R&D project(s)
- Claiming a project also has received grant funding
- Are you up to speed with the HMRC submission rules?
- Do you know if you are following the new rules of the R&D Tax Relief programme and planning for what is likely to change in 2023?
- Are you prepared if HMRC challenges your R&D tax credit claim?
Another test to consider is how much time is it taking you and your staff to put together your R&D claim? If it is significant, it takes away from what your employees were hired to do and that is to ensure your company grows.
Having said this, RDP can advise on eligibility, maximise your R&D costs, and most importantly take only 1.5 to 2 hours of your time throughout the process while our technology professionals complete your R&D tax credit claim.
If you are new to claiming R&D tax credits and would like to determine if you are eligible, complete our 5 question test https://rdpassociates.co.uk/eligibility-checker/
Upon doing so, RDP will identify and confirm your eligibility within a 15-meeting. Which will also include an estimated range of what your potential tax benefits and/or cash refund) may be should you elect to file an R&D tax credit claim.
Get in touch with us here for a free consultation. So RDP to review your prior claim and/or advise whether you qualify to submit an R&D claim.