What Is R&D Tax Relief?

Before diving into the deadlines, it’s worth clarifying what R&D tax relief is. The UK government introduced this incentive to encourage businesses to invest in innovation. Qualifying R&D activities can include developing new technologies, products, or processes, as well as enhancing existing ones. The relief is available to both small and medium-sized enterprises (SMEs) and large companies through two schemes:

• R&D Tax Relief for SMEs: Companies with fewer than 500 employees and a turnover of less than €100 million or a balance sheet total under €86 million can claim under this scheme. The relief allows you to deduct an extra 130% of your qualifying R&D costs from your annual profits, on top of the normal 100% deduction. If the company is loss-making, it can claim a cash credit.


• R&D Expenditure Credit (RDEC): This is aimed at larger companies or those ineligible for the SME scheme. It allows companies to claim a taxable credit worth 20% of their qualifying R&D expenditure.

The Key R&D Tax Deadlines

1. Claim Deadline: 2 Years from the End of the Accounting Period

The most critical deadline to be aware of is the two-year deadline from the end of your company’s accounting period. This means you have two years from the end of your financial year to submit an R&D tax relief claim for that period. For example, if your accounting period ends on 31 March 2022, you have until 31 March 2024 to file your R&D claim.

It’s important to note that if you miss this deadline, you won’t be able to claim for that accounting period. Hence, it’s advisable to start the process early to ensure you have ample time to prepare your claim.

2. Filing Your Corporation Tax Return (CT600)

To claim R&D tax relief, your claim needs to be made alongside your Corporation Tax return (CT600). The CT600 must be filed annually, and it includes the figures for your company’s taxable profits or losses. You can amend your Corporation Tax return within 12 months of its original submission, which provides another opportunity to adjust your R&D claim if you initially missed it.

Make sure that the R&D claim is properly attached to your Corporation Tax return when filing. Many companies often choose to work with tax advisors to ensure the calculations are accurate and meet HMRC’s requirements.

3. Amendments to Claims

If you discover errors or omissions in your R&D claim after submitting it, you can make amendments within 12 months of the original submission of your Corporation Tax return. This gives you additional flexibility if you realise that some qualifying costs were missed or if more information comes to light after submission.

Important Dates to Keep in Mind for R&D Tax Deadlines:

• End of Your Accounting Period: This marks the starting point for your two-year window to submit your R&D tax claim.


• 12 Months from CT600 Submission: You have 12 months from the date you submit your Corporation Tax return to amend your R&D claim.

Working with Tax Advisors

The R&D tax relief process can be complex, and many businesses find it beneficial to work with tax advisors who specialise in R&D claims. These advisors have a deep understanding of HMRC’s guidelines and can help ensure that your claim is accurate, complete, and compliant.

Tax advisors can assist in identifying all qualifying activities and expenditures, preparing the necessary documentation, and submitting the claim on your behalf. They can also offer advice on how to structure your R&D projects to maximise the tax relief you can claim.

If your company has multiple R&D projects, your tax advisor can also help consolidate and streamline the claim process. They ensure that the correct procedures are followed, reducing the risk of errors that could lead to delays or rejected claims by HMRC.

How to Stay on Top of R&D Tax Deadlines

Here are a few tips to ensure you don’t miss any crucial R&D tax deadlines:

• Plan Ahead: Start gathering documentation and identifying qualifying projects well before the end of your accounting period.


• Set Reminders: Use digital calendars or project management tools to set reminders for important deadlines, such as the end of your accounting period and your CT600 filing date.


• Consult a Tax Advisor: Engage a professional tax advisor early on to help you navigate the complexities of R&D tax relief and meet all your deadlines.

Final Thoughts

R&D tax relief can be a valuable asset for companies that invest in innovation. However, understanding and meeting key deadlines is crucial to ensure you don’t miss out on potential tax savings. By staying organised, planning ahead, and working with experienced tax advisors, your business can fully leverage the benefits of R&D tax relief while avoiding any unnecessary penalties or missed opportunities.