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Why Should You Compile Your R&D Claim Before Filing Your Annual Accounts?
Many companies treat their R&D tax relief claim as an afterthought — something to sort out once the annual accounts are filed. But under the UK’s RDEC (Research & Development Expenditure Credit) scheme, that approach can create avoidable delays, missed opportunities, and compliance risks.
Preparing your R&D claim before finalising your annual accounts ensures your figures are accurate, aligned and compliant — and can even accelerate your benefit. Here’s three reasons why it matters.
1️⃣ The RDEC credit is ‘above the line’
Under the RDEC scheme, the credit must appear in your profit and loss account — it’s part of your reported earnings.
If you only calculate your R&D claim after filing, you may need to restate your accounts or risk under-reporting the benefit in the claim year or the next year’s accounts.
Preparing early ensures your RDEC credit is correctly recognised and transparently reported in your company’s financial statements. If it's not reported correctly HMRC can reject your claim and you may not be told why it was rejected, leaving you and your accountant puzzling over it.
2️⃣ You can file your tax return — and receive the benefit — faster
Once your RDEC figure is confirmed and included in your annual accounts, it can be incorporated into your CT600 tax return as part of the normal filing process.
This allows you to submit your claim to HMRC sooner, accelerating the cash payment or tax offset by several months.
In contrast, companies that delay their claim often wait much longer to see the benefit — sometimes well into the next financial year.
3️⃣ You avoid mismatched figures and last-minute rejections
A common reason R&D claims are automatically rejected by HMRC’s systems is simple: the numbers don’t match.
If the figures in your R&D Additional Information Form (AIF), annual accounts, and CT600 don’t align exactly, the claim is flagged and stopped.
Preparing your RDEC claim early gives you time to check all submissions for consistency and correct any discrepancies before filing deadlines loom.
If you discover an error close to your two-year deadline, there’s often no time to fix it — and your claim could be lost entirely.
In summary
Preparing your R&D claim in tandem with your annual accounts isn’t just more efficient — it’s good governance.
It ensures your RDEC credit is properly recognised, your tax return process runs smoothly and your claim stands up to HMRC scrutiny.
💡 Tip: Start compiling your R&D claim — and completing the online AIF — two to three months before your target date for filing your annual accounts. This gives your finance and technical teams time to collaborate and verify figures while information is current and reliable.
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