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In R&D Tax Credit terms, the definition of a ‘Successful’ claim is one that is both optimised and compliant. Just ‘winging it’ with a claim is a bit like driving a car with no insurance – not a problem till you have an accident (or in this case a HMRC enquiry which may well cause […]

Blackbay is the leading provider of mobility enabled-solutions for the transport and logistics’ industry.

With the number of SMEs claiming R&D Tax Credits more than doubling between 2013-14 (15,585) and 2016-17 (34,060), and with an average claim value of c£54,000, it is clear that awareness of this attractive scheme and its benefits continues to increase, which is good news for the economy.

HMRC do not publicise their criteria for selecting R&D claims for enquiry, nor their frequency. But it is clear the selection process combines a risk-matrix approach: How much tax may be at stake How likely is the claim to be correct Combine these two points with several randomly selected enquiries to protect the system.

The major source of R&D grants for UK technology companies are Innovate UK and European Commission’s Horizon 2020 programme. So, what happens to these funding opportunities in 2019?

Having identified all qualifying R&D projects and their associated expenditure, there’s the third stage, the successful submission of a well-presented claim, and one that meets HMRC requirements.

Identifying qualifying R&D may be the hardest part of completing a R&D Tax Credit claim, but there are a number of potential issues you need to consider when calculating qualifying expenditure. Here are just a few examples:

An optimised R&D tax credit claim relies on identifying all those projects that qualify – it doesn’t mean throwing in the kitchen sink just to make the numbers look good.

An optimised R&D tax credit claim relies on identifying those projects that qualify – if you don’t get this right then you won’t be able to claim the right amount of qualifying expenditure. And that means making a fresh assessment every year.

An optimised R&D tax credit claim relies on identifying those projects that qualify – if you don’t get this right then you won’t be able to claim the right amount of qualifying expenditure. Sounds straightforward enough, but if it was, we wouldn’t be publishing the 4th in our series of blogs on areas commonly missed by companies […]