When R&D tax relief first fell onto your radar, you were no doubt blown away by the generous benefit, of up to £33 back for every £100 you invest in R&D. But the truth is – as you may have already experienced – for R&D projects, the amount you can claim ranges anywhere from 0 to 33%, depending on several factors.
We understand that as a business investing in research and development activity, and making R&D tax relief claims, it’s important for you to have as much certainty over your R&D claim, as early as possible.
This is important because……
…… you won’t get any benefit from the investment until around a year or more later.
……it allows for a more accurate estimate of the true cost of the investment at the outset.
…….it enables more accurate budgeting for the time and resource invested.
…….it enables more accurate cashflow forecasting so you can plan for future investment.
SO, HOW CAN YOU BETTER FORECAST YOUR R&D CLAIM?
To get a better understanding of the true cost of your R&D investment, there are three big questions you need to be able to answer BEFORE you kickstart your next R&D project.
- Is it even an R&D project?
- Which qualifying activity will you be able to claim costs for?
- What R&D rate should be applied to the qualifying activity?
If you can answer these three questions before your R&D project starts, you will be in a much stronger position to forecast a more accurate R&D claim.
For guidance on how to answer the above three questions, check out our latest blog post ‘Better forecasting your R&D tax claim’:
YOUR R&D CLAIM
If you need help determining whether your activities or expenditure qualify for R&D Tax Relief, we’re here to help. Book a scoping call here on 01752 752210 or email support@marclawson.co.uk .