R&D Tax Claims: HMRC finally go-digital.

24th October 2019

In February 2019 HMRC introduced an online tool to submit Research & Development tax relief claims (both SME and RDEC claims). It is still necessary to make the claim on a company tax return (form CT600), but the accompanying detailed R&D project information can (but does not have to) now be submitted by completion of an online form, instead of attaching a pdf report to the return.

So what are the benefits of HMRC capturing the data in this new way:

  • Following a question and answer standard template format reduces the risk of companies omitting key information that HMRC will require. This should reduce occasions when HMRC request further information, and/or this consequence resulting in a formal aspect tax enquiry being opened.
  • It should be easier now for HMRC to assess whether or not an R&D project qualifies for the enhanced tax reliefs. This may help in reducing the time it currently takes for HMRC to issue an R&D Credit related tax refund.
  • Giving information to HMRC in this way is consistent with the direction of travel for UK tax administration; where posted forms and explanations are being replaced by standard e-submissions.

Although initial update of this new facility has been slow in first 6 months, any changes that make it easier for companies to claim what is arguably the most generous tax legislation on the UK statute book must be encouraged. As R&D tax relief is, effectively, funded from the EU purse, let’s not consider today what impact Brexit might have upon this.

Other items in Blogs
Harriet Sim
22nd October 2021 Self Assessment late payment penalties

HMRC are now issuing six month late payment penalty notices, as the due date for 2019/20 tax payments was over seven months ago (includes consideration to the additional months extension as a result of the pandemic). Taxpayers facing financial difficulties due to the impact of COVID-19 may have entered into a time to pay arrangement…

Nick Edgley
21st October 2021 Holiday lettings – declare to HMRC

If you own a UK holiday let are you declaring your rental profits to HMRC? If not time may be running out to make a voluntary disclosure of past profits.   HMRC has the power to request information, or documents, from third parties such as holiday booking sites; as well as being able to search…

Keri John
20th October 2021 Xero – Assigning Bills to Customers

You can now assign bills to customers in Xero!   This makes it easier to allocate expenses occurred during a job to the correct customer.   Perfect for Estate Agents, event planners and more.   When creating a bill to pay onto Xero there is an option to ‘assign the bill to a customer’. You…

Jake Day
20th October 2021 Minimising Your IHT Exposure

As Benjamin Franklin once said; the only two certainties in life are death and taxes. Although it’s a sombre subject, it is important to put in place the right planning so that when we are hit by one, we can avoid the other. We want to ensure we are able to leave as much of…

Paul Jefferson
19th October 2021 VAT Registration

A business must compulsorily register for VAT if taxable 12 month turnover exceeds £85,000. They can voluntarily register for VAT as soon as they start trading, providing they expect to make taxable supplies in the future.   Businesses that provide to other businesses may choose to register for VAT voluntarily before the registration threshold is…

Sharon Mace
13th October 2021 VAT DIY Scheme: HMRC update list of allowable expenses

There has been some controversy on claims made on DIY building schemes. HMRC have updated their guidance on goods and services that can be claimed under the VAT DIY Housebuilders’ Scheme.   The list is extensive and gives an ABC of items that are allowed, from Agas to woodworm treatment – but there’s a catch,…