Tax breaks for innovative companies provide encouragement for entrepreneurs and tech developers to make the kind of commitment they might not be able to otherwise afford.<\/p>\n
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Innovation, research and development can be risky and expensive but could end up hugely profitable, as well as being at the forefront of the development of cutting edge technology.<\/p>\n
The Government\u2019s R&D tax credits provide companies with the kind of support to innovate their field of expertise.<\/p>\n
It involves the submission of a claim via the Company Tax Return CT600 form, detailing the full amount of expenditure that qualifies for this type of support. You may also be eligible to make backdated claims.<\/p>\n
In order for your R&D tax credit claim to be accepted, it\u2019s important that you explain in detail that your company:<\/p>\n
It makes up part of a review process to check that it\u2019s behaving fairly, and properly distributing the money available for R&D tax incentives.<\/p>\n
The reasoning behind HMRC opening a tax enquiry can vary. It could be for something related to the business itself, like a change of personnel or a significant change in the company\u2019s figures. They may also have some questions about the work a company carries out, or about the technology or software it uses.<\/p>\n
What are the common reasons for HMRC investigation?<\/p>\n
HMRC also opens enquiries randomly on a percentage of all R&D tax credit claims. This is done to test procedures and check the tax relief schemes are working as intended. As alluded to in the last point, a tax enquiry could be more likely if your client works in a field or industry that HMRC is currently interested in.<\/p>\n
For help and advice on R&D tax credits\u00a0contact a member of our expert team today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"