R&D tax credits offer a valuable financial incentive to encourage innovation and development within businesses. However, understanding the deadlines for R&D tax claims is crucial for companies looking to take full advantage of this relief. If you’re unsure about the process or key dates, consulting tax advisors near you can help ensure you don’t miss out on these valuable opportunities.

Typically, businesses have a two-year window from the end of the accounting period in which the R&D expenditure occurred to submit their claims. Missing this deadline can result in a lost opportunity for funding and support. Therefore, staying informed about key dates and requirements for R&D tax claims is essential.

In this blog, we’ll guide you through the critical aspects of the R&D tax claim deadlines, explain what to do if you miss them, and provide tips for navigating the submission process smoothly. Let’s ensure you’re well-prepared to maximize your R&D tax relief benefits.

What Are R&D Tax Credits?

R&D tax credits are a government-backed initiative designed to support businesses that invest in innovative projects. These credits are available to companies engaged in activities aimed at advancing science or technology through new products, processes, or services. The ultimate goal of R&D tax credits is to promote investment in research and development, driving economic growth and competitiveness.

Eligible activities for R&D tax relief can include developing new software, improving manufacturing processes, or conducting scientific research. Businesses can claim a percentage of their qualifying R&D expenses as tax relief, which can reduce their tax bill or result in a cash refund.

To qualify, companies must show that their projects involve uncertainty and aim to overcome technical challenges. Leveraging R&D tax credits not only provides financial support but fosters innovation that can lead to long-term success. Understanding these credits is essential for any company investing in R&D.

Who Is Eligible for R&D Tax Credits?

To be eligible for R&D tax credits, a company must meet the following criteria:

• Be a limited company subject to UK corporation tax: Only UK-incorporated limited companies liable for Corporation Tax can claim R&D tax credits.


• Have incurred qualifying expenditure: Eligible expenses include staff costs, subcontractor fees, software, and consumable items used in the R&D process.


• Be a small or medium-sized enterprise (SME): SMEs are defined as companies with fewer than 500 employees and either an annual turnover not exceeding €100 million or a balance sheet total not exceeding €86 million.


• Be a large company: Large companies with over 500 employees that meet the financial criteria mentioned above can also claim R&D tax credits.


• Company types: Companies in sectors such as manufacturing, information & communication, and professional, scientific, and technical services are eligible to claim.

It’s important to note that even if a company doesn’t conduct R&D directly, it may still qualify for tax credits if it subcontracts R&D work to third parties or contributes to projects with research organizations or universities.

Process of Claiming R&D Tax Credits

Claiming R&D tax credits involves several steps:

1. Identify eligible projects: Review projects for scientific or technological advancements and uncertainties.


2. Gather documentation: Collect records of project descriptions, financial statements, and R&D expenses.


3. Calculate qualifying expenditure: Include costs related to staff, materials, software, and subcontractors.


4. Complete the R&D claim form: Usually submitted with your Corporation Tax Return, summarizing R&D activities and costs.


5. Submit your claim: Send your Corporation Tax Return and R&D claim form to HMRC, ensuring all information is accurate.


6. Respond to HMRC queries: Be prepared to answer HMRC’s questions regarding your claim.


7. Receive your credit: Upon approval, you’ll receive R&D tax credits, which can reduce your tax liability or provide a cash refund.

What Are the R&D Tax Deadlines?

Notify HMRC early: It’s advisable to notify HMRC of your intention to claim R&D tax credits before submitting your Corporation Tax Return. Early notification helps ensure that HMRC is aware of your claim and can offer guidance. While not mandatory, it can lead to a smoother claims process.

Deadline for submitting the actual claim: The deadline for submitting your R&D tax credit claim is two years after the end of the accounting period in which the qualifying R&D work occurred. For first-time or infrequent claimants (those who haven’t claimed in the past three years), you must submit a claim notification form within six months of the end of the accounting period. The claim notification window runs from October 1, 2023, to September 30, 2026.

Missed the deadline? In rare cases, HMRC may accept late claims if exceptional circumstances can be demonstrated, but this is not guaranteed and requires strong justification.

Consequences of Missing R&D Tax Deadlines

• Loss of eligibility: Failing to submit your claim within the two-year deadline will disqualify you from receiving credits for that period.


• No retroactive claims: After the deadline has passed, you cannot submit a retroactive claim, which means losing potential financial support.


• Impact on cash flow: Missing out on R&D tax credits can affect cash flow, especially for businesses relying on these funds to support ongoing projects.


• Be diligent: Keep detailed records and regularly review your R&D activities to avoid missing deadlines.

If you need further assistance with R&D tax credits, our team of experts is here to guide you through the process and ensure you meet all the necessary regulations.