Research and Development Advance Assurance is a great way to make your first 3 R&D claims hassle-free and increase the confidence of investors in your business. While many people know about R&D tax credits, few know about the R&D Advance Assurance and its benefits. This article will help you learn more about what R&D Advance Assurance is, who can apply for it and how to complete your application on SeedLegals.
What is R&D Advance Assurance?
R&D Advance Assurance is a guarantee from HMRC that R&D tax relief claims submitted in the first 3 financial periods after the approval of the R&D Advance Assurance will be automatically approved (as long as the final R&D claim will be in line with what was discussed in the R&D Advance Assurance). While it is not necessary to apply for the Advance Assurance before you start your first R&D claim, it is useful to make the process of claiming R&D tax credits quicker. It is also a good way for your investors to know that their funds will be used on R&D and their money will go further.
Who can apply for R&D Advance Assurance?
To be eligible for R&D Advance Assurance, you must be able to confirm the following information about your company:
- It must be planning to do R&D or already has done R&D. Learn more about what qualifies as R&D
- It must be an active company
- It must not have claimed R&D tax credits previously
- If it is part of a group, no company in the group should have claimed R&D tax credits previously
- It must have an annual turnover below £2 Million
- It must be eligible to pay corporation tax in the UK
- It must not have more than 50 employees
- It must not be a serious tax defaulter or used a tax avoidance scheme
When and how to apply for your R&D Advance Assurance?
You can apply for R&D Advance Assurance any time before your first R&D tax credits claim. The best time to apply is when you know that you will be undertaking activities that would qualify as R&D activities in the next few years. You will only be able to apply for Advance Assurance once during the lifetime of the company.
Follow these step to complete your R&D Advance Assurance application on SeedLegals-
1. Start your R&D Advance Assurance application:
To start your R&D Advance Assurance application, go to the R&D Cashback tab and click to start a new R&D Advance Assurance application.
A new window will open on the right side of the page with information about the R&D Advance Assurance product and the eligibility requirements. Read these requirements and confirm that you are eligible to apply for R&D Advance Assurance.
2. Complete the Application Questions:
Click Set Details in the Complete Questions tab to start filling out the R&D Advance Assurance form.
Follow the steps in the new window to complete the Qualifying Questions and give Company Information. Further, also give information about the R&D activities your plan to undertake and the expected R&D Expenditure.
3. Unlock the R&D Advance Assurance application:
After you have completed your application questions, you can sign the application and then you will be prompted to pay £200, this will include our review by our R&D experts, who we will get back to you within 3 days with any comments they may have so your application is in line with HMRC requirements! Once you have completed these steps, you will be able to create, unlock and download the completed R&D Advance Assurance form and Cover Letter.
4. Send your Application to HMRC:
We will notify you once we have reviewed your application and it is ready to be submitted to HMRC. Unlike many other applications, you will not be able to email this application to HMRC. Download your completed R&D Advance Assurance Application form and Cover Letter and post these to HMRC at:
I & R Unit Manchester (AA)
NEWCASTLE UPON TYNE
HMRC will contact you with further questions about your application. We will prepare you on this, and we will send you instructions on what HMRC would like to hear. You will hear back from HMRC in 3-4 weeks about the outcome of your application.
Any questions? Click here to speak to one of our experts and start your R&D Advance Assurance application today!