Luvo Financial shares advice on how to present the right information in the Corporation Tax return to support a speedy turnaround of R&D Tax claims.

In the latest in our series of ‘practical guidance top tips’, we look at CT600 forms and share our six tips for best practice for accountants to guarantee your clients’ Corporation Tax returns are right first time and promptly settled by HMRC.

Crafting an R&D Tax Credit application takes time, but the effort is worth it and rewarded when the payment or cash credit comes through (or the tax reduction is realised).

But a small error or omission in the original filing will almost certainly mean a delay in HMRC processing the application, and in turn a delay in the repayment and / or cash credit reaching companies. So, how can you avoid this?

Guide

We often hear of delays for companies in receiving repayments and / or cash credits from HMRC because of errors in the filing of R&D Tax Credit claims.

Top tips

Read these top tips for accountants for our handy guide to what to do and how to present the right information in the Corporation Tax Return form – CT600 – which will help reduce the chances of delays for your client’s R&D Tax claims and maximise the chances of a speedy turnaround and payment.

1. For submissions and re-submissions, always attach a copy of both the R&D Tax cost summary and Technical Justification report to the CT600 before filing with HMRC.
2. For re-submissions, HMRC now requires revised tax computations to be filed in addition to the R&D cost summary and Technical Justification report.
3. Check that the enhanced expenditure (Box 660) agrees with the information provided by the R&D specialist.
4. Ensure that if a payable cash credit is being claimed, the correct cash credit value is provided in Boxes 530 and 875.
5. If a repayment or payable cash credit is being claimed, the box on the first page of the CT600 must be ticked, otherwise HMRC will leave the repayment as a balance on account, and not necessarily repay the client.
6. If a repayment or payable cash credit is being claimed, the bank details must be filled-in on the last page (Boxes 920-970). If these are not completed, HMRC will make the repayment via cheque which can take a further 2 or 3 weeks before it reaches your client.

Luvo

Luvo works predominantly for small and medium sized businesses in a wide variety of industry and market sectors, and also delivers specialist R&D Tax, Patent Box and Capital Allowances advice and claims support to numerous independent accountancy firms and practices. Luvo works on a contingent basis and nothing is charged for any initial discussions or support until an engagement is fully agreed. The firm’s team has achieved a 100% success record in making R&D tax claims for its clients.