Filing The CT600 Form for Tax Credits: Everything You Need to Know to Get your R&D tax credit

The last step to filing an R&D tax claim is to complete and file the company’s CT600. It’s imperative that you know exactly which boxes to fill out in the form so that the correct data is also placed in the correct boxes.

This is very important because if your claim is enquired into by HMRC, it will take lots of time to revise and resubmit the claim and get a positive resolution.

Tax claims

File a revision instead of filing a direct claim

When it is time for the submission of the claim, the financial and technical sections should be included. After this, you must proceed with filing the form for your tax return, CT600, and corresponding tax calculations.

There are some who believe that filing a revision helps expedite the claim process. This is done by filing the accounts as a normal tax return, then an amendment to the tax return is submitted including the amount claimed for R&D. It’s also believed that this helps avoid the claim from being enquired into by HMRC.

Is it possible to use software?

At this time, HMRC is still in the process of developing a software that can help businesses with filing the claim. Nevertheless, this is yet to be finalised. To make sure that the claim is devoid of any mistakes, take as much time as possible to review and revise the claim as needed.

If mistakes are made with the claim you filed, HMRC may impose fines. In the event that you file the claim correctly, it should be cleared for processing and you can expect a tax credit as early as two weeks from the date filed.

filing for tax return

Filing concerns to address

With a pretty straightforward process of filing a claim, is there anything else you need to know besides the basic steps? Here are some common concerns raised by companies related to filing an HMRC R&D tax credit claim.

1. Should you get your accountant involved in filing a claim?

Getting your accountant involved in the filing process seems like a good idea but keep in mind that some accountants may not have the necessary expertise when it comes to R&D taxation issues. While an accountant can help in some general aspects of the filing process, you may need a specialist for more complicated steps.

2. Can you file a tax credit claim every year?

Companies that have made significant strides towards research and development are likely to continue doing so. This means that your company will be eligible to file tax credit claims on a yearly basis if there are eligible R&D activities undertaken.

3. Should large claims be processed by a specialist?

Once again, this decision depends on how competent you feel about filing the tax credit on your own. If you have a qualified accountant working for the company who has expertise in this area, then hiring a specialist may no longer be necessary. As a reminder, if you don’t want to make mistakes, a specialist in R&D tax claims can truly add value.

It is not always a painstaking process if you know the basics and focus on executing the steps properly.