How the tax credits process works

Claiming a tax credit from HM Revenue and Customs (HMRC) can be a demanding process, particularly if you're not working with experienced professionals familiar with how the scheme operates. 

The first step is to identify whether any of your activities qualify as research and development in line with the scheme. These activities must have been undertaken sometime in the last two completed financial years.

Having identified one or more R&D projects, such as where a product was created or a process improved, you must then calculate all the costs associated with each project.

Completing the HMRC application process involves writing up a technical narrative that describes the project and completing the necessary form. All this is then submitted to HMRC.

It can take up to three months for your claim to be processed, and up to another month to receive payment if one is due. Therefore, it makes sense to initiate the process as soon as possible.

We help you with R&D tax credit claims

Our role, as business finance brokers, is to help companies like you raise the working capital you need to keep going and to keep growing. This includes helping you maximise your opportunity with R&D tax credits.

Your company may well have completed a number of R&D projects over the last few years, but to you they were just doing business as usual. You could be entitled to thousands of pounds in unclaimed tax credits.

If you are owed tax credits it will probably take a few months to complete and process a claim. Taking action today means you will receive the funds sooner.

Our business finance specialists talk to businesses like yours every day, supporting them through making a tax claim. Get in touch today.

----------- Sources ----------------

https://forrestbrown.co.uk/news/hmrc-rd-tax-credit-statistics-2020/