R&D tax credits aren’t just for the here and now, companies can carry them forward or claim retrospectively, depending on their circumstances. Whether you’ve recently discovered eligible projects or you’re running at a loss, understanding how far back you can claim (and how to time your submissions) can make a real difference to your cash flow.
In this article
- How far back can I claim?
- Carrying forward R&D tax credits
- Can I claim with no past R&D records?
- Adjusting your accounting period
- What about new businesses?
- How we can help
How far back can I claim?
Companies can amend their Corporation Tax return for up to two years after the end of their accounting period. Given you submitted a Claim Notification form 6 months after the end of the accounting period, you have 24 months to submit your R&D tax claim.
Carrying forward R&D credits
If your business is loss-making, you may choose to carry forward your R&D credit and offset it against future profits instead of receiving a cash credit now. This can be a strategic move if you anticipate future profitability and want to reduce your upcoming Corporation Tax bill.
Can I claim with no past R&D records?
Don’t worry, you can still claim R&D tax credits even without dedicated records. While detailed tracking is ideal, it’s not always the reality, especially for smaller or first-time claimants.
Start by identifying any projects undertaken during the claim period that aimed to resolve scientific or technological uncertainties. From there, work backwards to estimate the costs, using HMRC’s recognised categories (e.g. staff, subcontractors, software, consumables). The key is to clearly link each cost to the R&D activity—HMRC needs to see that your figures are justifiable and rooted in real work.
Although retrospective claims are possible, real-time recordkeeping is strongly recommended. Not only does it streamline future claims, but it also strengthens your position if HMRC reviews your submission. HMRC prefers timesheets, but simple project logs or regular reviews of R&D work and costs are often enough.
Adjusting your accounting period
To better align claims with R&D activity or access funding earlier companies can shorten or extend their accounting periods. This flexibility can be helpful, especially when combined with R&D advance funding schemes, which let eligible businesses unlock up to 80% of their expected credit up to 9 months early.
Expertise
How we can help
Recover valuable cash by claiming tax relief on eligible innovation and development activities.
Track R&D costs as they occur for accurate, transparent reporting and optimised claims.
Track you R&D tax claim with our digital tool aimed at complete data transparency and optimised workflows.
What do I need to know about R&D claims?