6 R&D Tax relief Myths – Debunked
Think you’re clued up on R&D tax reliefs or R&D tax credits as it is sometimes referred to? If you’ve read our post on the subject, you’ll be up-to-date with the latest information. But there are a few myths in circulation which can be misleading. We’re here to clear them up for you.
Myth 1: You can only claim R&D tax reliefs for your current financial year.
Actually, you can make a retrospective claim for up to 2 years before the current financial year-end. If you’re a business that’s new to the scheme, this is great news as it means you can still go back and claim for previous projects.
Myth 2: You can only claim R&D tax reliefs for successful projects.
You can claim for any eligible R&D project – whether successful or not. In fact, unsuccessful projects can actually be better for an R&D claim as they demonstrate obvious uncertainty in the work.
Myth 3: You’re not eligible for R&D tax reliefs unless you work in a scientific industry.
R&D tax reliefs are not industry specific. They are available for any ltd company from any sector – providing, of course, you’re facing uncertainty while working towards an advance in your industry.
Myth 4: Subcontracted out work is ineligible for an R&D tax relief claim.
The subcontractor issue is a tricky one – but tricky doesn’t mean impossible. If you’re subcontracting your R&D work to a third party, you need to be aware of where the responsibility for the work lies, who is undertaking the cost, and about your contractual situation – all of which affect R&D tax relief eligibility.
Myth 5: Claiming R&D tax reliefs is hard.
We’ll not say it’s uncomplicated – but the right R&D tax relief expert will take the hard work out of it for you. Which will sometimes include liaising with the R&D team at HMRC.
Myth 6: I have to spend a lot of money just to find out if I’m eligible
Not true. A good R&D advisor will be able to give you good idea as to your eligibility and if they’re that certain, they should put their money where their mouth is and charge a contingent fee based upon success.
Still unsure about applying for your R&D tax credit? Speak to one of our experts today.
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