In short, Yes, a business can claim every year as long as the company is continuing R&D activities in their accounting periods. Companies are eligible each year to make an application for relief depending on qualifying activities if in line with HMRC guidelines. It is expected that a company that invests in R&D will claim each year as the notion of R&D will be ingrained in their business operations.
Can I claim R&D tax credits every year?
A query we often receive is whether R&D tax credits are claimed as a one-time effort. This question is often of interest to companies who regularly engage in R&D activities and projects. In short, the answer as explained above is yes. Companies that are involved in development work to enhance capabilities of a particular product, process, or methodology or extend the overall knowledge of the field they are operating in could potentially benefit from R&D Tax reliefs.
What if my project spans multiple years, am I eligible for R&D tax credits in all years?
Within each accounting period, the R&D activities should be defined clearly to highlight the advances sought in each year and how they attempted to resolve the challenges of the R&D projects. In this instance where an R&D project extends over multiple years, it’s possible to submit claims for each year if the activities are ringfenced appropriately.
How far back can I claim R&D tax relief?
Submissions for R&D claims can be back dated by up to 2 accounting periods.
R&D tax relief advice:
For help in claiming provided by qualified experts within the R&D tax field including Ph.D. level scientists and accountants please get in touch. RCK can help you navigate these complexities with ease and handle all communications with HMRC on your behalf.
