Businesses with a March year-end are now at risk of missing out on valuable tax relief if they don’t submit a Research & Development (R&D) claim before the end of their accounting year.
If your business invests in innovation, but are not aware of the benefits of making an R&D claim, it’s highly likely that you could be about to lose thousands of pounds – the average claims are in excess of £59,000!
Why does having a March year-end matter?
R&D tax relief can only be claimed two years from the end of your accounting period. This means that once your business enters a new tax year, you are no longer eligible to claim for any projects that took place more than two years previously.
Research carried out by Catax found that although around 78% of businesses are likely to be eligible for R&D tax relief, just 37% report claiming it.
What activity qualifies for an R&D claim?
R&D tax relief is awarded to businesses that invest in innovation. This innovation can be in the form of developing new systems, processes, products, materials, devices, or any changes to the way your business works. The chances are your business is doing R&D without even realising.
R&D occurs in a great variety of different industries, despite the misconception that this type of work is only carried out in laboratories or by scientists.
How do I make an R&D claim?
Although many accountants claim to be able to complete your R&D tax claim for you, the complex nature of this area of tax often requires a specialist. We recommend Catax, an industry leading tax consultancy who specialise in this form of tax relief. They employ over 100 members of staff across the UK and can guarantee to maximise the claim that is made on your behalf.
There are a number of reasons why Catax are considered leaders in the marketplace for R&D tax relief.
Firstly, they submit over 200 claims per month with HMRC so their knowledge and expertise is vast, and their success rate is incredibly high. At the time of writing they only have one enquiry open with HMRC.
Catax are also the only company who can claim partnerships with some of the UK’s top accountants and solicitors, as well as the Law Society, ICAEW, and the IFA amongst other industry bodies. This adds a level of assurance to their clients that they are working with the best in the business, and their claim will be managed properly.
So far, they have helped clients claim back over a quarter of a billion pounds in tax relief for their clients, which is often invested back into the business to fund further research projects, hire new staff or to improve business premises. This is a relief that HMRC encourage businesses to claim as the money often goes back into the UK economy, so there really isn’t any reason not to try it!
Let’s get started!
If you have a March year-end, the deadline for starting this process is fast approaching. To find out whether you can make a claim, please contact Catax on 0300 303 1903, or email enquiries@catax.com for a free consultation.
