R&D tax credits FAQ 

1. How can a claim be made?

 

A claim is generally made through a company’s corporation tax return (which is now generally filed online via ROS). In addition to working with you to compile a compliant R&D tax credit claim, KPMG can advise you how to file the claim with Revenue. 

 

2. Is my company eligible for the R&D tax credit?

 

You can try our free online R&D tax credit assessor  to help determine whether your company may be eligible for the tax credit. Alternatively, please feel free to contact us. At no cost or obligation to you, we can discuss your potential to claim a credit.

 

3. How much time is involved?

 

We understand that your time is a scarce resource. The credit can be very valuable for your company and, as such, a limited investment of your time is required. We aim to reduce the workload of our clients by providing a tailored and streamlined process proven to allow you to claim the credit with minimal disruption to your day-to-day activities. We seek to ensure that the interaction with the relevant personnel is kept to a minimum but appropriate level.

 

4. How can we ensure we get the full benefit of the R&D tax credit?

 

In order to derive the full benefit from the credit, it is important to undertake a detailed review of your activities and determine whether they meet the qualifying criteria set out in the legislation and Revenue Guidelines for R&D tax credit. KPMG can talk to you, at no cost or obligation, to help you explore your potential to claim in light of the activities you carry out. When providing you with R&D tax credit services, we can also advise on your tax obligations with regard to relevant related corporation tax issues.

 

5. What happens if more than one group company is carrying out R&D?

 

Care must be taken to ensure the correct treatment is adopted when compiling a claim for a group of companies.  We can advise on the appropriate treatment in each case to ensure a reasonable and audit-ready claim is prepared.

 

6. What do we do with respect to the base year?

 

This is a common issue for many companies. The base year is (generally) a period of 12 months ending on a date in 2003. As the credit is available for incremental expenditure (i.e. the difference between relevant period and base year expenditure) it is crucial to determine the correct level of R&D expenditure incurred in the base year. As part of our service, we work with you to ascertain the correct treatment with respect to the base year.  In our experience, this is an area that Revenue tends to focus on during an audit of a claim.