Preparing an R&D claim can be a very intensive process, involving a large number of stakeholders, and a lot of information (both financial and technical).

Once the process of preparing the financial and technical information is done, the final phase of an R&D claim is largely administrative, a job for the 'back office' of a consultancy. This final phase - the Claim Completion phase - is about bringing all the prepared information together, getting it submitted to HMRC, and tracking the claim through to a successful outcome.

Claimer's Claim Completion Suite's is a suite of products/modules that facilitate a high-level of process automation across the whole completion phase. The goal is to significantly reduce the administrative burden consultancies encounter in this phase by providing software solutions for every step of the completion workflow.

To address the inconsistent terminology used within the industry, we have chosen to adopt the preferred naming conventions of HM Revenue & Customs (HMRC).

For comprehensive understanding, it's essential to grasp two key concepts as outlined by HMRC:

Financial Year

• Definition: The period covered by a company's annual accounts filed with Companies House, lasting up to a maximum of 18 months.

Accounting Period for Corporation Tax

• Definition: A period, limited to a maximum of 12 months, for which R&D tax relief can be claimed via a tax return submission.

Relationship Between Financial Year and Accounting Period for Corporation Tax:

• For a financial year lasting 12 months or less there is typically a single aligned accounting period for corporation tax.
• If the financial year exceeds 12 months, it necessitates filing multiple corporation tax returns
  • This often occurs following a company's first year of incorporation. In such cases:
    • The financial year begins on the day of incorporation and ends on the last day of the same month one year later.
    • Two accounting periods are typically formed: one covering the initial 12 months and the other encompassing the remaining days beyond the initial 12 months.

Crucial Points:

• An accounting period for corporation tax cannot span multiple financial years.
• Historical financial year dates from Companies House filings are set in stone, serving as a reliable reference point.

Claim:

• A "Claim" in our system aligns with the financial year, supporting multiple accounting periods for corporation tax.
• Our system automatically determines accounting periods based on HMRC defaults, with the option for manual adjustment if required.