Contents
When is the best time to start up a conversation about your next R&D tax relief claim?
You know that we keep in touch regularly with you to check on the progress of your R&D so that we can be ready to compile a claim as information becomes available.
We try not to take it personally when you tell us that you’re not ready to get going straight away, but we do want to highlight the benefits of getting on top of your R&D tax relief claims.
When is the best time to start an R&D tax relief claim?
Provided you have started work on a valid R&D project, the best time to start working on your R&D tax relief claim is right now.
This is not to say that we will have the whole thing fully costed and compiled from the first day of your research.
Instead, we want to improve the quality of R&D tax relief claims by mitigating the risks that come from leaving things late in the day.
This process begins by accurately tracking the technical and financial information associated with the R&D project.
While the financial information is likely to be more accessible after the fact, there is a very real possibility that technical information can be lost as time goes by.
Without keeping detailed notes on how and why the project was undertaken in a specific way, it can make writing the technical narrative more challenging.
This situation is made worse if key R&D staff leave the business mid-project.
You do not want to be in a position where vital information is stored exclusively in the heads of your competent professionals.
We will work to craft a compelling technical narrative using all the available information, but your R&D tax relief claim can only be strengthened through reference to contemporaneous notes recorded by those directly involved in the work.
What is the best timeline for an R&D tax relief claim?
Our goal is to help you become more confident with your R&D tax relief claims and a major part of this is handling everything at the ideal time.
During your accounting period, collecting the financial and technical information should be your focus.
As you near the end of your accounting period, it is possible to start work on the R&D tax relief claim.
We can talk things through with you, compiling all the data you have at that moment in time.
HMRC prefer companies to file an R&D tax relief claim as part of the original tax return rather than as an amendment.
This can show that you are serious about R&D and are not trying to throw together a last-minute claim in the hopes that you get some extra money.
Instead, you are already demonstrating an awareness of the costs incurred by your projects, adding greater legitimacy to your R&D tax relief claim.
Meeting HMRC’s timeframe lets you off the hook for submitting an Advanced Notification Form for the next three years, so it is well worth keeping on top of it.
Once you have finalised and submitted your CT600, we are then able to incorporate the figures into the claim and ensure that the costing is accurate.
Of course, we would encourage you to finalise and submit your CT600 as soon as you are able to, but we will leave that discussion between you and your accountant.
Only once the CT600 is submitted can the R&D tax relief claim be finalised.
While you can include the previous two accounting periods in an R&D tax relief, anything before that point will be lost.
This is why we may express a greater sense of urgency for claims that cover a longer period or that aim to reach further back to ensure that all costs can be included.
Ultimately, approaching your R&D tax relief claim as something that can be worked on throughout the year should reduce the pressure of deadlines.
As a reminder, if you have gone three years without claiming, you will need to submit an Advanced Notification Form within six months of your financial year-end.
We will let you know if this is the case for you, so you can get this sorted out in plenty of time and not risk losing the work you have done.
Now is the time to get going on your next R&D tax relief claim and we look forward to you getting in touch with our team!
Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.
Sign up to our Newsletter
Stay ahead with the latest R&D tax insights, funding updates, and innovation trends — straight to your inbox.
