Frequently Asked Questions…

 

Research and Development Tax Credits

How long will the process take?

Every claim is different, however, the minimum according to HMRC is 28 days from receipt of the claim.

What is R&D tax credit?

R&D Tax Credits is a Government scheme introduced to the UK in 2000. It is an incentive designed to encourage businesses to invest in Research and Development. 

How does R&D tax credit work?

When a business invests in Research and Development they are eligible to claim a % of the money spent back from the HMRC.  If eligible, the company is required to submit a claim into the HMRC. Once the claim is completed, cash payment and/or corporation reduction will be processed. 

How do I claim R&D tax relief?

We take care of this for you! We have a simple process and have explained it all here: https://legalrooms.co.uk/rd-tax-how-to-claim/

 

How do I know if I’m carrying out R&D?

If we have approached you, chances are you are carrying out Research and Development. Our guys know their stuff and would have carried out research based on your website prior to contacting you. Our tax experts will do further research and find out how much you have invested in R&D. From there, our accountants will create a full breakdown prior to submitting to the HMRC. 

How far back can I claim R&D tax credits?

The tax credit claim time limit is two years from the end of your accounting period. 

How much will I get back?

There are a number of things to take into consideration when offering a calculation on what can be expected in terms of relief from HMRC, our experts can go through this with you and ensure we claim every penny you are entitled to.

What qualifies for R&D tax relief?

R&D tax relief isn’t just about science and technology. Some of the qualifying expenditures are:

  • Consumables
  • Software Development 
  • Externally Provided Workers
  • Staff Costs
  • Subcontractors

How are R&D tax credits calculated?

The tax credits are calculated based on the money you have invested in R&D. Our experts will calculate the qualifying expenditure and create a report to submit to the HMRC.  

What if I have no records of my R&D?

Again, this is something we are here for! Although it is important to have the records of your R&D expenditure, all is not lost if you don’t have these. Research and development work often leaves a mark on the business without formal documentation and our Tax Advisors will be on hand to help investigate this and build a claim for you. 

HMRC and Tax FAQs

Legal Rooms Limited is a registered HMRC agent. This means that with permission, we can act on behalf of another company with regards to their Corporation Tax,  VAT or PAYE.  As an HMRC agent, we can access our client’s online Corporation Tax portal and we have the authority to submit a claim on their behalf.

 

 

How to contact HMRC?

You can contact HMRC via their website.  They have a tax credits page where you can talk to them via webchat or manage your query online.

What does HMRC stand for?

HMRC stands for ‘Her Majesty’s Revenue and Customs’. 

What is an SME?

SME stands for ‘Small and medium-sized enterprises’. An SME is defined by its amount of employees and usually any business fewer than 250 employees are called as an SME. 

How to claim Tax back?

If you think you are due a tax rebate, you can enquire and submit an application on HMRC’s website. 

What is a tax credits calculator?

HMRC offer a Tax Credits Calculator. You can do this online. They offer working tax credit calculator and child tax credit calculator. Their calculator will offer an estimate of how much you could get.  

What are Tax Credits?

There are two types of tax credits, one is working tax credits and one is child tax credits. Tax credits are issued by the government for those with certain criteria. You can find out if you are eligible by visiting the GOV.UK website. 

 

Other Useful Resources…..

HMRC – What is Research and Development?

 

HMRC – What expenses qualify for Research & Development tax relief?

Contact Us

If you can’t find what you’re looking for online or you wish to make an appointment with one of our consultants, please use the contact details below.

0800 2294907

Legal Rooms, Harbour Business Centre, 6 Harbour Rd, Paisley PA3 4DB

Monday to Friday: 8:30am-5pm, Close Saturday and Sunday