Why is the Government promoting R&D tax relief and is there a time limit?
R&D tax relief was introduced many years ago but the current Government is heavily promoting the relief. Some commentators speculate that this is because they want to present the figures as part of their election manifesto. More likely it is because it wishes to reward innovation which bring jobs and growth to the UK economy.
It is not known how long the relief will continue to be available. Furthermore, any removal of the relief would be extremely unpopular. However, you should make a claim as soon as possible just in case the worst comes to the worst. You only have a two year window to make a claim. Moreover, you could be in a position to reclaim some tax that has already been paid.
Don’t miss out a potential claim for your company
Many focus on “research” and “science” and picture a laboratory full of scientists working on the latest ‘wonder’ drug rather than your own company. This leads you to dismiss a claim for research and development (R&D) tax reliefs as you don’t carry out the work that you’d imagine would qualify. Unfortunately, this prejudice could cost your company a significant amount of money.
The quality of the argument by the accountants, to pursue a claim for R&D tax relief, clearly depends upon the accountants knowledge.
It may be that the accountants have dismissed a claim before even speaking to you and if they do ask the question, they will make a note that you don’t think that you qualify, if you suggest that you don’t. They’ll then mention that they will see you in six months, if you’re lucky.
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