How to claim your tax credits
We want to work with you to get the best results for your business. With GovGrant every step will be easy and transparent.
The first step is to ﬁnd out a little bit about your business, to understand how we can help you. If we don’t think we can help at all, then we’ll let you know. We will be able to establish which government scheme will be the best place to start – R&D tax relief, capital allowances claim or the Patent Box scheme.
2. Agreeing how we work together
We set out what we can do for you, when we will do it and what we will charge. Everything is transparent. We hope the only surprise will be how much you can successfully claim.
3. Getting to know your business
You will be matched with an expert, who will understand your business and speak your language. They will spend some time on site with you to identify the areas where a claim can be made – we know where to look.
4. Putting your best claim together
Taking the things that we’ve learnt about you, we will work with our tax experts to pull everything together. We know what HMRC are looking for and what makes a successful claim.
5. Dealing with HMRC
We are authorised to submit a claim to HMRC on your behalf. If HMRC come back with further questions then we will of course deal with them for you.
6. Receiving the benefit
Your award will come to you as a cheque or a tax allowance – usually within a month of submitting a claim. You only settle your invoice once you’ve received the grant or tax relief.
Below are some frequently asked questions about making claims. If you have any further questions please contact our experts who will be happy to advise you.
No, the company can be in a loss position. These losses can then be utilised (i.e. not carried forward for tax relief in the future) and the company receive an R&D cash refund, without paying any corporation tax.
One of the requirements for an R&D claim is that the qualifying costs are included in the accounts and are allowable for tax purposes.
Therefore, we need to check that the qualifying costs are included in the relevant accounts either in the profit and loss account or Intangible fixed asset additions and also that they are not disallowed in the tax computation.
HMRC may reject an R&D claim, but they will firstly request further information, either Technical or Financial about the R&D claim before this is actioned. This is normally called an ‘HMRC Enquiry’.
Once the questions from HMRC have been addressed, HMRC may conclude either, that there is no qualifying R&D activity and reject the claim in full, or if they agree that there is some qualifying R&D activity but this is not represented by the size of the claim, they will reduce the R&D claim to fairly reflect the qualifying R&D activities undertaken by the company.
As a GovGrant customer if you face an HMRC enquiry we will defend it on your behalf at no extra charge. We have an enquiry rate of less than 0.2% compared to the industry wide rate of 14%.
Within the SME scheme, a company can claim subcontractor costs (UK or overseas) for direct R&D activities, but for the RDEC scheme the subcontractor rules are more restrictive.
Yes, employees and externally provided workers (EPWs) are the only qualifying costs where indirect R&D activities can be claimed (i.e. subcontractors cannot claim for indirect R&D activities)
For SMEs, outsourced subcontractor costs (in the UK or overseas) that are undertaking qualifying direct R&D activities are allowable costs and can be included in the R&D claim. There is however a statutory deduction of 65% from the costs if the subcontractor is not connected or deemed to be connected to the company.
Generally, if the grant funding is “State Aid” then the company will need to make a claim under the RDEC scheme (even if they would normally qualify as an SME).
And even if you’ve made a claim already
We maximise claims through an expert led, detailed assessment of your activities. There is usually a very good chance we will improve them.
On average, we have increased existing claims by 200%, because we know how to find the full potential of your claim.
Contact us for a free review to see if we can increase your claim
If you can dream it, you can do it.