From April 2023, claims for research and development will need to be more specific, so getting ready and communicating well will be essential. Accountants’ workloads will significantly rise since HMRC is prioritising responsibility and proof in its compliance initiatives, even for those who regularly provide simple background information.
Beyond the necessary statistics, there is presently no set procedure for making a claim for R&D Tax Credits. Without any supporting documentation outlining what the customer has actually been doing, accountants might submit such numbers on the CT600; nevertheless, professional companies have never worked in this way. They produce reports that detail how the eligible expenses are related to the legislation.
HMRC now plans to go in this approach for all claims beginning in April 2023. Its purpose is to eliminate claims with no foundation and to incentivise claimants to eliminate questionable projects and expenses by requiring more thorough justifications. For the first time, HMRC will want lengthy submissions to support claims.
Other Changes on R&D Tax Schemes Reforms
- Data and Cloud Computing will be eligible – read all about this here!
- Pure Maths will be eligible
- Overseas work will be excluded
- Claims will be submitted digitally only
- Claims must include details of any agents involved in the preparation of the claim
- A Company Senior Officer must endorse the claim
- Claimants must notify HMRC of their intention to claim R&D Tax (within 6 months of the end of the Accounting Period)
How to Approach Your R&D Claims in 2023
Report writing is an art, therefore hiring a professional makes sense! Consider your report as your chance to appease the HMRC inspectors’ diligent team.
Due to the generous nature of the programme, there can be no shortcuts taken when it comes to R&D tax relief compliance because HMRC has higher standards for applicants than ever before.
Avoid failing from the start by tackling it alone! Despite the temptation, it is really not worth the risk to make an R&D claim without professional assistance. Even one rejected application on the books of your company might lead to a number of later inquiries that are challenging to dismiss. Therefore, the best course of action is to choose an expert with a good reputation, such as Kirby and Haslam.
Given that there is more room for error or misuse when there isn’t clear advice or agreement on interpretation, it is probable that HMRC will pay close attention to these new regulations. We advise getting a professional to help you, Kirby and Haslam have 19 years of experience, and not only this, we have the technical expertise to carry out assessments and write reports that can establish exactly what in your project is claimable making the process as smooth as possible. We deal with R&D claims day in, and day out.
What is a compliance check?
A compliance check happens when HMRC receive any type of tax claim – they will ask a series of questions. This sometimes happens at random, but it can also be a result of the things that are in your report.
What is a summary report?
Watch our handy video here to find out what a summary report is!
What services do Kirby and Haslam offer?
Kirby and Haslam offer a few different services for accountants and R&D firms. We offer:
- Bespoke report writing, with full financial breakdowns
- Compliance support – supporting yourself and your businesses through any enquiries from HMRC
- We also pick up enquires mid-service, with our consultancy service
- We offer end-to-end compliant and enquiry support packages, helping businesses provide the best possible responses to the revenue. Our commitment is to get our clients the best resolution.
Even if the accounts won’t be ready for a few months, you need to be more aware of the prospect of making an R&D claim. Kirby and Haslam can help you stay on track and on top of your claim with our highly trained, accountants.