Tax is a notoriously complex subject, which is why many businesses – understandably – content themselves with knowing the basics that enable them to submit accurate tax returns and stay out of trouble with HMRC.

Small businesses in particular could be forgiven for not investigating the potential around claiming R&D tax credits. With so much to manage, niche tax benefits often get overlooked. But claiming for R&D tax relief can have a big impact on a company’s finances and could, in some cases, even mean the difference between continuing a research and development project for another year and abandoning it through lack of resource.

Here, we take a look at why employing an R&D tax specialist can help your business reap the financial rewards of an innovative project.

Defining eligibility

Many businesses find themselves juggling several projects at once, and with much to oversee, investigating the eligibility of an activity for R&D tax credits can be side-lined. An R&D tax specialist can, with some basic information, confirm whether a project is eligible for the relief and inform you of whether a successful claim can be made. This means that you can simply supply the information needed and return your focus to the business issues at hand.

Identifying qualifying costs

Once your project has been confirmed to be eligible, it’s necessary to identify the costs that can be claimed for. These can include salaries, materials, sub-contractor costs and more. Once again, a tax specialist can help you to do this. With their niche knowledge of R&D tax claims, they can help you maximise the value of your application and get the best possible remuneration for your R&D efforts.

Preparing a claim

Once qualifying costs have been identified and gathered, and details of the project and its objectives and challenges discussed, an R&D tax specialist can calculate the value of the claim and draft a report for HMRC on your behalf. In leaving this with a professional, you can be secure in the knowledge that the calculations will be accurate, and that the report will offer the best chance of success.

Many specialists in this field – such as R&D Tax Solutions in Manchester – have a very high success rate and, should the claim not be successful or raise queries from HMRC, can liaise with the tax office on your behalf to resolve any issues or appeal the decision.

Offering advice

Even if you’re determined to calculate the R&D tax credit claim and submit the report yourself, it’s still worth running it by an R&D tax specialist or turning to them for advice. With their comprehensive knowledge of the subject, they can advise on issues such as grant funding in relation to R&D claims, as well as check your calculations and supporting documents to ensure they can result in a successful claim.

For assistance with your R&D tax credit claim, or to find out more about a project’s eligibility or the claims process, speak to an R&D tax specialist today.

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