To help avoid some problems with your tax claim, here are some tips you can make use of.
– The first thing to do is to determine the size of your business. This is due to the fact that R&D tax credits come with two types according to the size of your company.
– Do not neglect tax credits. If you have grant funding, there is a chance that it can affect your claim. This is because the grant will be determine if it has contributed to the project you are claiming the credit for. But then, it will depend on the kind of grant you receive.
However, there will be no effect to expect when your grant doesn’t contribute to the project related to R&D expenditure.
– When claiming for tax credits, it is very essential to arm yourself with knowledge on what you can claim for. Despite the fact that this process can be difficult, it can also provide you with advantages that can save your business. You should understand that not all claims can help you grow your business, but there are those that will just delay or trigger lengthy inquiry.
You can speak with an expert to help you in this matter.
– Another tip you can use is to surrender your losses. It is better for you to carry your losses since it can give you greater return in the future. To get through the process more smooth, you can ask help from a tax credits experts.
– The projects you are making the claim is also essential. As you submit your technical narrative, be sure that you are putting into the important details.
– Do not write a boring technical narrative, but one that can bring home the bacon. Doing this proves that you have made a solution from any technical uncertainty and that you are moving forward.
It is wrong to think that a good technical narrative is long. All you have to do is to keep it simple. Be sure that the people who will be reading it will understand it clearly. And, write every important details on it.
– The size of your claim should be balanced with your technical narrative. Again, you don’t have to write a several pages for your narrative, but include all the necessary details.
– The last thing that you should do is to carefully go through your claim before you file. It is very important that your CT600, tax computations and P&L match your computations. All the costs should be consistent and match with each other.
Now, with these tips above it will sure be easier for you to claim for your R&D tax credits.