Myth Busters

Don’t let a ‘myth’ prevent you from claiming.

Don’t let your doubts about R&D Tax Credits stop you from making a claim. After a brief chat with randd uk it doesn’t take long to dispel any concerns you may have. We’ve answered a few common worries below that some business owners have expressed.

It all sounds too good to be true.

We understand that but it really isn’t. No catches, no hidden costs, no hidden agenda. It’s simply a government backed tax incentive to encourage and reward innovation, which underpins the growth in the UK economy, especially through SME’s.

Will claiming take up a lot of time and be disrupting to the business?

Absolutely not on both counts. Typically we only need one meeting with key people, and after that most of the work we do at our office with very minimal involvement required other than maybe clarifying a few points. Minimum hassle, maximum return.

The R&D we did didn’t work – do we still qualify?

Yes. You’re R&D doesn’t have to succeed to potentially qualify; innovation is all about trial and error after all. As long as the ‘scientific or technological uncertainty’ can be shown, you can still claim.

We don’t have an R&D budget or department. Do we still qualify?

You don’t need people wearing white lab coats to be involved in R&D, nor a defined R&D budget. Innovation is simply about finding new and improved ways to do things, and that’s all we need to identify your potential eligibility and activities for a claim.

Is it only for companies inventing something new?

Not the case at all. In fact the majority of claims revolve around problem solving around existing products, processes and systems, not inventing new ones.

If we make a claim, will HMRC want to discuss all our tax affairs?

R&D claims go through the specialist R&D HMRC department. The report we submit relates only to matters specific to the claim so there’s no risk of this whatsoever.

Can you only claim for your current financial year?

You can make a retrospective claim up to two years from your current financial year end, which means you don’t need to miss out claiming on that work previously.

 

If I was eligible, would my Accountant have already told me about R&D Tax Credits?

Possibly, but not definitely or necessarily. Whilst some of the larger accountancy firms may have people who understand this tax area, the majority may not. Even those that do are unlikely to be doing this every day unlike randd uk, who easily recognise eligible activities and have a strong relationship with HMRC.

Have your own question? We’re here to help.

Here are few ways to contact us.

Give us a call

We’ll be happy to answer any questions you may have. Simply give us a call on 01332 477 070.

Send us an email

Drop us a short email with your questions, and we’ll be happy to reply.

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