If your business is already in receipt of Research and Development tax credits, it is important to understand the benefits of re-engaging early. It’s easy to carry out your first claim and then not to start thinking about the next one but you can start your R&D claim at any time before or after the end of your financial period. The client engagement team at Bonham & Brook have put together the reasons to start the process much earlier than other consultants.
R&D relief must be claimed within two years of the accounting period in which the R&D you are claiming for took place. This sounds like a long time; however, we all know how quickly the months fly by when you are working in a fast-paced industry! Failing to meet these deadlines can result in businesses missing out on the opportunity to recoup their R&D costs. Re-engaging early helps ensure that these deadlines are met.
R&D tax reliefs and credits can result in significant tax savings or cash refunds for eligible businesses. Re-engaging early helps ensure that companies can maximise their claims and access these financial benefits sooner.
R&D projects involve various (and often costly) expenses, such as employee salaries, subcontractor costs, and materials. Claiming R&D tax relief in a timely manner allows businesses to recover a portion of these costs, improving cash flow and reducing the financial burden often associated with innovation.
By re-engaging early with the claims process, businesses can allocate more resources to ongoing projects, fostering an environment of innovation and competitiveness and removing any barriers to pushing ahead of their competition. Receiving relief early allows companies to reinvest and develop cutting-edge products or services that help them stand out in the market.
Claiming R&D tax relief can be a complex process and there are risks of mistakes, omissions, or calculation errors. Which is why you should appoint a trusted expert, like us! By starting the process early, not rushing and giving yourself plenty of time to sense-check, businesses can reduce the risk of facing compliance issues, delays, or penalties.
R&D tax relief programs and regulations can change over time, or as we have experienced, several times in one year! Keeping up with these changes and adapting your claims can be stressful. Early engagement can help you stay up-to-date and ensure that you are making the most of the available incentives. You can read the latest updates here.
Proper documenting and recording of R&D activities and costs is critical for successful claims. By re-engaging early, businesses can establish a good, efficient record keeping practice and remain compliant.
Leveraging Research & Development tax claims can contribute to business growth, by reducing costs, realising funding to take on more staff and allowing you to expand your business through future innovation.
To summarise, re-engaging early with your R&D tax relief claim can provide businesses with financial benefits, improved cash flow and mitigated risks. Getting ahead of the curve with good practice can also ensure that your business is compliant and is able to gain a competitive advantage.
This proactive approach can help businesses to take full advantage of the incentives and support available for their progressive projects.
Whether you are considering claiming for the first time, need help with an ongoing claim or want to re-engage early for your next R&D tax claim, then our personable and trusted advisors are on hand to help you move things forward. Call us on 020 3523 9125, email firstname.lastname@example.org or click here and scroll down to the calendar to schedule a meeting with Dominic Bonham.