HMRC's new tool for R&D scheme: A game changer for businesses

HMRC launched a new tool yesterday to allow companies establish if a project they have worked on is likely to meet the criteria for R&D tax relief. Whilst I would have liked to see a bit more guidance for each of the questions, maybe a short video explaining some of the concepts, it should hopefully at least make users stop and think about the questions, and go seek additional information, before deciding if their project qualifies, or not. As HMRC can always add more functionality later, it's encouraging they are seeking to assist company owners in making an informed decision, when it comes to the eligibility of their potential R&D claim. https://lnkd.in/eKJBhDxp

Earlier this week, HMRC rolled out a new online tool designed to help businesses work out whether their projects might qualify for R&D tax relief. On the surface, it looks like a small step – Just another government tool. But actually, I personally think it’s a really interesting development. For years, there’s been a lot of confusion (and debate) around what HMRC actually means by “R&D”. This tool offers something tangible: a simple, free, and user-friendly way to explore whether your project activities could fall within their definition. It doesn’t save personal data, it nudges you to structure your thinking, and it provides clarity straight from the source. Of course, there are caveats. The tool isn’t legally binding; complex projects will still need the experience of a professional eye; accuracy depends on how well you interpret and answer the questions, and it won’t calculate your claim or tell you which costs qualify. But as a first step (especially for those considering a claim for the first time), it’s genuinely useful. For me, the bigger picture is this: anything that demystifies R&D tax relief and makes it more accessible is a win. But the real challenge will always be in the grey areas, where judgement and expertise matter most. 👉 You can explore the HMRC tool here: https://lnkd.in/euMH2k6H

HMRC has launched a new online tool designed to help businesses assess whether their activities may qualify as Research & Development for tax relief purposes. We were pleased to have contributed to the testing of this tool and see it as a positive step toward improving understanding and accessibility around R&D tax relief. While the tool offers a useful initial indication, it requires an existing understanding of the criteria to be used effectively. The tool should be used in conjunction with wider guidance (including the helpful Guidelines for Compliance on R&D), and/or professional advice to ensure claims are accurate, compliant, and reflect the full scope of eligible activity. ✅ A good starting point ⚠️ Not a substitute for expert guidance You can find the tool here: https://lnkd.in/eVbQv47V #R&D #TaxRelief #Innovation #HMRC #RDClaims #BusinessSupport #TaxCompliance

🚨 10 Days Left: HMRC Claim Notification Deadline Approaching 🚨 If your company’s financial year ended in April 2025, you have until 31 October 2025 to submit your R&D Claim Notification Form to HMRC. This deadline is crucial for any business planning to make an R&D tax relief claim for the first time - or after more than three years since your last claim. Missing it means you won’t be able to claim for that period, even if you’ve carried out eligible R&D work. ✅ Who needs to act: - Companies with an accounting year end in April 2025 - Businesses intending to claim R&D tax relief (SME or RDEC scheme) 🕒 Deadline: 31 October 2025 - just 10 days away From personal experience, I’ve spoken with several companies that have missed out on an entire year’s worth of R&D tax benefit - often substantial amounts - simply by overlooking this one administrative step. If you’re unsure whether you need to submit a notification, it’s worth checking now. The process only takes a short time but could protect a valuable claim for your business. If you’d like guidance or a quick review of your situation, feel free to get in touch - there’s still time to meet the deadline. Link for more information in the comments below. #HMRC #RandD #TaxRelief #Innovation #BusinessFinance #Deadlines

Before you file your tax returns, pause and read this 🚩 Last year, a client called me sounding panicked. She had just filed her company’s tax returns and got flagged for audit two weeks later. When we reviewed her file, the issue wasn’t complicated. It was a simple mistake that could’ve been avoided if she had done one thing 👉 checked her records properly before submission. So, let me share 5 red flags you should look out for before filing your tax returns 👇 1️⃣ Figures without backup — If you can’t trace an amount to a ledger, schedule, or computation sheet, that’s a red flag. 2️⃣ Unreconciled revenue and expenses — When your internal books and what you report to FIRS don’t align, it raises eyebrows. 3️⃣ Unclaimed WHT credits — I’ve seen businesses lose millions because they didn’t report their withholding tax receipts. 4️⃣ Late PAYE remittances — The days of “they won’t notice” are gone. The authorities are now tracking this actively. 5️⃣ Wrong assessment basis — Are you a small, medium, or large company? That little box can make a big difference in how you’re taxed. Before you hit “submit”, go through your tax file like the auditor you don’t want visiting your office. Trust me that one extra hour of review can save you weeks of stress. Would you like me to share a simple “Tax Return Review Checklist” to make this easier? Comment “Checklist” if you want it.

𝐌𝐢𝐬𝐬𝐞𝐝 𝐭𝐡𝐞 𝐈𝐓𝐑 𝐃𝐞𝐚𝐝𝐥𝐢𝐧𝐞? 𝐇𝐞𝐫𝐞'𝐬 𝐚 𝐂𝐫𝐮𝐜𝐢𝐚𝐥 𝐔𝐩𝐝𝐚𝐭𝐞 𝐨𝐧 𝐘𝐨𝐮𝐫 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱 𝐑𝐞𝐟𝐮𝐧𝐝 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 (𝐀𝐘 2025-26) The original due date for filing your Income Tax Return (ITR) for AY 2025-26 (FY 2024-25) has passed, and many taxpayers are now preparing to file a belated return (with a penalty) by December 31st. 𝐀 𝐟𝐫𝐞𝐪𝐮𝐞𝐧𝐭 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧 𝐚𝐫𝐢𝐬𝐞𝐬: If I file my ITR late, will I still receive interest on my due tax refund? The short answer is YES, but with a significant catch that every taxpayer and professional needs to note: 𝐓𝐡𝐞 𝐂𝐫𝐢𝐭𝐢𝐜𝐚𝐥 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞 𝐢𝐧 𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧 (𝐒𝐞𝐜𝐭𝐢𝐨𝐧 244𝐀) While the Income Tax Department compensates taxpayers for delays under Section 244A at a rate of 0.5% per month, the starting date for this calculation changes dramatically if you file late: 𝐓𝐢𝐦𝐞𝐥𝐲 𝐅𝐢𝐥𝐞𝐝 𝐈𝐓𝐑: The interest on the refund is calculated starting from April 1st of the financial year up to the date the refund is paid. (This maximizes your interest period). 𝐁𝐞𝐥𝐚𝐭𝐞𝐝 𝐈𝐓𝐑 𝐅𝐢𝐥𝐢𝐧𝐠: The interest calculation period starts only from the date you actually file the belated return up to the date of refund payment. This means a late filing, while securing the principal refund, causes you to forfeit several months of accrued interest (from April 1st to your filing date). 𝐓𝐡𝐞 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲: The law ensures you are not disadvantaged by procedural delays, but it strongly incentivizes timely compliance. Filing on time is the only way to ensure you receive the maximum eligible interest on your refund amount. 𝐈𝐭’𝐬 𝐚 𝐩𝐨𝐰𝐞𝐫𝐟𝐮𝐥 𝐫𝐞𝐦𝐢𝐧𝐝𝐞𝐫: Timely ITR filing isn't just about avoiding penalties; it's about optimizing your returns!

The Federal Tax Authority has released a series of updated guides and user manuals in late 2025, covering several critical areas: • Filing of corporate tax returns. • Requirements for audited financial statements within tax groups. • Procedures for corporate tax de-registration. • Rules for changing corporate tax periods. These updates are not minor administrative changes. They directly affect how businesses prepare filings, which forms they must use, and what penalties apply for errors or omissions. Businesses that fail to align their processes with these updated guides risk late filings, rejected submissions, or unnecessary penalties. FFG stays at the forefront of regulatory updates and ensures clients are fully briefed on changes. We assist in interpreting the new guidance, adjusting internal accounting calendars, and preparing businesses for seamless compliance.

HMRC’S NEW ONLINE TOOL TO CHECK PROJECT ELIGIBILITY HMRC has introduced a new online tool to help businesses better understand key R&D concepts and navigate relevant guidance and support. It is particularly useful for companies that are new to R&D tax relief or uncertain about whether their project activities meet the eligibility criteria. The tool uses a series of guided Yes/No questions to determine whether the project meets the eligibility criteria and contains helpful links that clarify important terms such as ‘Science’, ‘Technology’, and ‘Competent professional’, amongst others. There are further references to DSIT guidelines on R&D and instructions on how qualifying R&D activities may be identified.   Some sections MUST be completed by a competent professional with expertise in the relevant field.  Failing to involve such a person can lead to incorrect answers and misleading results, especially when assessing uncertainty or technological advancement. Once all questions are answered, the tool provides an indication of whether the project includes qualifying R&D activities for tax purposes. Note that the use of the tool is optional, and a positive outcome does not guarantee that HMRC will accept the claim. Importantly, the tool does not retain any input. HMRC advises users to save or print their responses for future reference. The tool is available on GOV.UK under https://lnkd.in/e3fGFT43. If you would like further assistance in understanding the key concepts of R&D eligibility for tax purposes and qualifying costs that can be claimed, please do not hesitate to contact us. #taxclaims #researchanddevelopmenttax

𝐍𝐞𝐰 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬 𝐟𝐨𝐫 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐃𝐢𝐫𝐞𝐜𝐭𝐨𝐫𝐬 𝐚𝐧𝐝 𝐓𝐡𝐞𝐢𝐫 𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐓𝐚𝐱 𝐑𝐞𝐭𝐮𝐫𝐧𝐬 In recent years HMRC’s focus has been on reducing the number of taxpayers who are required to file self-assessment tax returns. However, for those who still need to file a tax return, new requirements for 2025-26 onwards will require more comprehensive reporting, particularly for business owners and directors of UK resident companies. For several years, the employment pages of the self-assessment tax return have asked whether the taxpayer is a company director and whether the company in question is a close company. Completing these sections will become mandatory from 2025-26 onwards and, in addition, directors of close companies must include the following information in their personal Tax Returns for 2025-26 and future years in respect of each relevant close company: • The name and registered number of the close company. • The value of dividends received from the close company for the year (reporting those dividends separately to other UK dividends received). • Their percentage shareholding in the company during the year (based on the highest percentage shareholding at any point in the year if the holding changes during the year). Also effective from 2025-26, it will be mandatory to include a start and/or end date where a business operated by the taxpayer commences and/or ceases during a tax year. This will be mandatory on trust and partnership tax returns, as well as individual self-assessment returns. These new requirements will not change who is required to file a self-assessment tax return. The penalty for each failure to correctly supply the additional information requested is £60. This penalty will apply to individual, trust and partnership tax returns from 2025-26.

𝐓𝐚𝐱 𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐢𝐨𝐧 𝐋𝐞𝐭𝐭𝐞𝐫 𝐈𝐬𝐬𝐮𝐞𝐝 𝐖𝐢𝐭𝐡𝐨𝐮𝐭 𝐔𝐧𝐝𝐞𝐫𝐠𝐨𝐢𝐧𝐠 𝐚 𝐓𝐚𝐱 𝐀𝐮𝐝𝐢𝐭 In 2023, the Government issued the Minister of Finance Regulation No. 80 of 2023 (PMK-80/2023) which governs the Procedures for Issuing Tax Assessment Letters (SKP) and Tax Collection Letters (STP). The interesting points of this regulation is the necessity of a tax audit for the issuance of the Tax Collection Letter (STP) related to Article 14 paragraph (1) letter d of the KUP Law. Under Article 23 of PMK-80/2023, the Tax Collection Letters (STP) issued to a Taxable Entrepreneur for the failure or late issuance of a VAT Invoice (as specified in Article 14(1)(d) of the KUP Law and Article 17(1)(d) of PMK-80/2023) is classified as an STP related to a Tax Assessment Letter (SKP). The phrasing "related to the SKP" mandates that an STP, particularly in cases of non-issuance or late issuance of VAT Invoices, 𝐦𝐮𝐬𝐭 𝐛𝐞 𝐢𝐬𝐬𝐮𝐞𝐝 𝐛𝐚𝐬𝐞𝐝 𝐨𝐧 𝐭𝐡𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬 𝐨𝐟 𝐚 𝐭𝐚𝐱 𝐚𝐮𝐝𝐢𝐭. 𝐖𝐡𝐚𝐭 𝐢𝐟 𝐭𝐡𝐞 𝐃𝐢𝐫𝐞𝐜𝐭𝐨𝐫𝐚𝐭𝐞 𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐨𝐟 𝐓𝐚𝐱𝐞𝐬 (𝐃𝐆𝐓) 𝐈𝐬𝐬𝐮𝐞𝐬 𝐚𝐧 𝐒𝐓𝐏 𝐖𝐢𝐭𝐡𝐨𝐮𝐭 𝐚𝐧 𝐀𝐮𝐝𝐢𝐭? In practice, if the DGT issues such an STP without first conducting the required tax audit, it raises a significant legal question: Does this constitute a 𝐟𝐨𝐫𝐦𝐚𝐥 𝐝𝐞𝐟𝐞𝐜𝐭? In my opinion, such an STP may be deemed formally flawed as it 𝐯𝐢𝐨𝐥𝐚𝐭𝐞𝐬 𝐭𝐡𝐞 𝐩𝐫𝐨𝐜𝐞𝐝𝐮𝐫𝐚𝐥 𝐫𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭𝐬 stipulated in the tax regulations. Pursuant to Article 36(1)(c) of the KUP Law and Article 38 of PMK-118/2024, a taxpayer is entitled to submit an application for 𝐭𝐡𝐞 𝐜𝐚𝐧𝐜𝐞𝐥𝐥𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐚𝐧 "𝐢𝐧𝐜𝐨𝐫𝐫𝐞𝐜𝐭" 𝐒𝐓𝐏. Even though the criteria for an "incorrect" STP are not exhaustively detailed, a strong case can be made that an STP issued in contravention of the established procedural requirements. Therefore, an STP that lacks the necessary tax audit foundation may be challenged and subsequently cancelled through this administrative remedy.