That’s right. Even though the official method of claiming R & D Tax Credits is via a box on your company’s CT600 form the actual claim itself is completely separate from Corporation Tax. You do not even need to use the form in some cases as the claim can be submitted separately from the Corporation Tax computation and return.
Sure, figures from your accounting system are needed to calculate the amount you can claim, but that does not affect the figures used for the main Corporation tax return in any way.
It has been estimated that between 80% and 90% of the work necessary to make a Research and Development Tax Credit claim is industry knowledge and not accounting knowledge. The skills needed are being able to identify what activities you undertake that fall within the scheme, why they do so and how to describe them in terms that the Tax Inspector can readily understand.
The majority of that work requires technical understanding to recognise what your developers are doing coupled with the skill to document it in an easy to understand manner that complies with the HMRC regulations. Yes, you do need an encyclopaedic knowledge of the hundreds of pages of HMRC information and advice, and the skill to read accounting records, but it is the technical understanding that trumps the lot.
If you are already claiming RDTC then who is building your claim? Unless your accountant, whether internal or external, is skilled and up to date both technically and with the latest HMRC information then it is highly likely that you are under-claiming, maybe by as much as 50%.
Surely it’s worth a look to see. Call for our free R & D Tax Credit assessment service today