R&D Tax Relief Claims in Kent

How R&D relief works now

For accounting periods beginning on or after 1 April 2024, most companies claim through the merged R&D expenditure credit scheme. It gives a taxable expenditure credit of 20% of qualifying spend. Loss-making small and medium-sized companies that are R&D intensive, meaning qualifying R&D expenditure is at least 30% of total expenditure, may instead be able to claim enhanced R&D intensive support (ERIS). ERIS gives an additional 86% deduction and, where the company surrenders losses, a payable credit worth up to 14.5%. A company eligible for ERIS can choose the merged scheme instead, but cannot claim both on the same spending.

HMRC's guide to the merged scheme and ERIS sets out the full conditions, including a cap on the payable amount linked to PAYE and National Insurance in some cases.

Does your work qualify?

This is the question that matters most. A project qualifies when it seeks an advance in science or technology and has to resolve uncertainty that a competent professional in the field could not readily work out. Using new software, building a product your customers have not seen, or improving a process within your business does not, on its own, count. We will discuss the work with the people who did it and give you a frank view. If we do not think a project qualifies, we will say so.

Deadlines and paperwork you cannot skip

• Claim notification. If you are claiming for the first time, or have not claimed in the last three years, you must notify HMRC within six months of the end of the accounting period. Miss this window and the claim is invalid.
• Additional information form. Every claim must be supported by HMRC's online additional information form, describing the projects and the costs, before the tax return claim is made.
• Corporation Tax return. The claim itself is made in the company's return, so it needs to fit with your accounts and Corporation Tax computation.

How we help

1. An initial conversation about your projects and whether they are likely to meet the definition.
2. Checking whether a claim notification is needed and, if so, submitting it on time.
3. Identifying qualifying costs, such as staff time, consumables, software and some subcontractor or externally provided worker costs, and applying the restrictions that apply to overseas work.
4. Helping your technical team write clear project descriptions for the additional information form.
5. Including the claim in your return and keeping a file of the evidence in case HMRC asks questions.

HMRC looks closely at R&D claims, so we focus on accuracy and evidence rather than the largest possible figure. We do not work on a percentage of the tax saved, and we cannot guarantee that HMRC will accept a claim. If you have claimed in the past and are now worried an earlier claim was overstated, our tax disclosure service can help you put it right.

What we'll need from you

A summary of each project, who worked on it and for how long, payroll reports, invoices for materials, software and subcontractors, and your draft accounts for the period. Companies that also hold patents may want to look at Patent Box relief on the profits that follow.

We work with engineering, software and manufacturing companies across Kent, including the Discovery Park area and Canterbury's technology businesses. Send us a message with a short outline of your project.