At the top-level, to claim for R&D tax credits you put an X in box 650 and the enhanced R&D expenditure (ie 230% of the qualifying costs identified) in box 660 of your HMRC Corporation Tax return (CT600 v3), but getting that 230% figure and submitting the technical case study to accompany the claim is where expert help from companies like Amplifi Solutions can be invaluable.
“You have to work out your project costs, separate each qualifying cost under the five categories, uplift the allowable cost by 130% to get the enhanced expenditure and apply your Corporation Tax rate,” explains Jeff. “However, so many other variables such as grants or loss-making can change the entire calculation.”
With HMRC requiring supporting documentation to be sent to justify claims and with the risk that they could investigate your claim, Jeff advises businesses to keep detailed logs of when, whom and what was involved in each R&D project, but this is something a professional R&D Tax Advisor can help compile for past and current projects.
With the opportunity to claim tax relief back over an initial period of two financial years and to continue claiming on an annual basis, HMRC’s R&D tax credits could be a financial lifeline for many startups, and expert R&D tax advisors like Amplifi Solutions can guide you through the entire process.
Learn more about R&D tax credits for startups, find out how much you could claim or contact us to set up a free initial consultation.