Australia (AU)
If you are a small or medium-sized enterprise (SME), you may be eligible to claim R&D tax relief, if your project meets the definition of R&D. This will allow your company to:
- deduct an extra 130% of the qualifying cost from your yearly profit, as well as the normal 100% deduction, coming to a total of a 230% deduction;
- claim a tax credit if your company is loss making, worth up to 14.5% of the surrenderable loss.
In order to classify as a SME eligible to claim R&D tax relief, your company must have:
- less than 500 staff
- a turnover under €100 million or a balance sheet total under €86 million.
If you believe that your company may be eligible to claim R&D tax relief, as of 1 April 2019, it is a requirement that all R&D tax credit claims are accompanied by a CT600 and full computation. The reasons behind this new requirement can be found in our previous blog post.
Please note that even if your company has made a loss, or if no Corporate Tax is required to be paid, it is still necessary to fill out, file, and attach a CT600 form to your R&D claim.
Here are the steps to take in amending your CT600 to attach to your R&D tax credit claim:
- Find appropriate software. There are various different software packages available on the market to create a CT600. If your company’s tax computations are complex, Swanson Reed recommends you engage with a specialist, as the HMRC can apply penalties if your CT600 contains mistakes. Once your CT600 has been set up, the following steps are needed to add in the R&D Tax Credits claim
- Add R&D expenditure in your existing “Trading Profits” section
- Add input in the “Research & Development Tax Credit” section
Once the CT600 is appropriately amended to include your R&D, tax computations and technical narrative must be attached.
To receive guidance and advice, and avoid the risk of losing your opportunity to claim, please get in touch with our team and we can assist you on the best way to move forward with your R&D tax credit claim.
