HMRC launches online R&D tax relief tool

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

So it seems like HMRC are finally getting to grips with the R&D scheme. While the tool cannot replace expert judgement, it should help business leaders, R&D teams, and finance professionals to: • Clarify whether their initiatives align with HMRC’s qualifying criteria • Prepare better documentation before engaging advisors • Reduce wasted effort on claims with little chance of success. Should perhaps also weed out the businesses who falsify claims…!!

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

🚨 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

How should R&D expenses be treated when calculating the #FDII deduction? Crowe professionals Alexis Bergman, JD, LLM, CPA and Y.K. Chung break it down in the September #Tax Clinic of AICPA's Tax Adviser. https://lnkd.in/g3u38Jmd

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.

Making Tax Digital (MTD) is transforming how individuals and businesses manage their tax reporting, and it’s important to understand what’s changing. In this short video, Director Chloe Blackwell ACCA, explains how MTD will move us away from the traditional single annual tax return towards quarterly online submissions using HMRC recognised software, supported by an annual declaration. This change provides far greater visibility of your tax liabilities throughout the year, helping you plan ahead and stay in control of your finances. Watch the video to learn more about how MTD works and the benefits it brings to both individuals and businesses. For more information on MTD and how it could impact you, speak to a member of our team. #MakingTaxDigital #TaxUpdates #BusinessAdvisory

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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

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!