The R&D claim must be submitted no later than 12 months from the end of the accounting period to claim the R&D expenditure in that particular fiscal year period. For example, if an applicant has a December year end in 2016, the statutory filing deadline for the fiscal year 2016 is December 31, 2017. Although 12 months is given after the year-end to claim R&D expenditure, Braithwaite highly recommends our clients to claim with the current CT1 tax return. In this case, the current filing deadline becomes Sep. 23rd (i.e., 8 months and 23 days after the year-end) if electronic filing is selected, assuming the year-end remains December 31st. Selecting current filing approach provides the applicant a number of benefits. For instance:
Submitting a claim earlier provides a better opportunity to have the file assessed by Revenue earlier, and therefore the tax credit can be released earlier as a result.
The R&D claim is conducted in a retrospective manner, which requires the team to recollect the R&D efforts conducted in the past fiscal period. Preparing the claim earlier will not only produce an earlier submission but also better quality due to the fact that the team may remember their efforts much better than doing this later while under the rigid deadline pressure.
Timeline to file a claim
To ensure an R&D claim is filed on time to meet our client’s taxation plans, Braithwaite breaks down the R&D preparation approach into different phases:
- Phase 1 – Project Kick Off
- Phase 2 – Claim Preparation
- Phase 3 – Claim Validation
- Phase 4 – Finalize Claim
While we have an established approach to assist our clients to compile a claim, we always design our approach in a way to best fit our client’s needs, internal process, and planned timeline for filing R&D.
For a detailed look at all four phases of the timeline to file an R&D claim, please contact Braithwaite today.