Here's how to make an RDTI claim for the 2019/2020 income year.
If you are a business with a tax agent and a standard balance date (which means your income year ends on the 31 March), your claim will be for R&D activity undertaken during the period from 1 April 2019 to 31 March 2020.
The timeline below uses this example to show the steps to claim:
Year 1 (2019/2020) example for a business with a tax agent and a 31 March income year end
- If your business does not have a tax agent’s extension of time, the date for submitting the tax return is usually 7 July 2020.
- Does your business have a different income year end? Click here for examples of your key dates.
- NOTE: an extension of time may be granted if you don’t have one, please contact the RDTI team before your income tax return is due.
Submit your 2019/2020 Income Tax Return
After you have enrolled for the RDTI, the next step comes at the end of the year with the submission of your income tax return. If you are a business with a tax agent and a standard balance date, your 2019/2020 income tax return will be due on 31 March 2021, as shown in the example.
As you have enrolled for the RDTI, your tax return in myIR will include a few extra fields to allow you to input the amount of your RDTI claim.
Submit your 2019/2020 Research & Development Supplementary Return
You will also need to complete a specific supplementary return for the RDTI. If you have enrolled for the RDTI, you will find the ‘Research and Development Supplementary Return’ in your myIR account (it must be filed electronically.)
The supplementary return will require you to provide details about the R&D activities you performed. The activity description will link back to the RDTI definition of core and supporting R&D activities and you will need to explain how your activity meets the tests. You will also be required to provide details about the money you spent on those activities. You will need to supply the amounts for different expenditure types like salary costs, contractor costs and depreciation.
The supplementary return can be filed up until 30 days after the due date of your income tax return, however it is recommended that you file early to avoid missing the deadline. In the example above, for a standard balance date, the last day that the supplementary return can be filed is 30 April 2021.
Opt for a supplementary return filing date extension (only for 2019/2020)
The standard deadline for filing an RDTI supplementary return is 30 April 2021, as shown in our above example.
However, Inland Revenue is allowing an extra 60 day filing extension if your business was affected by COVID-19 so that it isn’t reasonable for you to meet the filing date for your 2019/2020 supplementary return (you will need to self-assess this and keep a note of your circumstances). In the above example that means you can submit your supplementary return application on 29 June 2021 instead of 30 April 2021. Further information is available on Inland Revenue’s website.
Where do I find help to complete and submit my 2019/2020 RDTI supplementary return?
- Check out the comprehensive 2019/2020 Research and Development Supplementary Return Guide on IR’s website.
- Watch our 35 minute webinar for step-by-step instructions to help you complete the Research and Development Supplementary Return.
- Still have questions? Contact the RDTI team.