A company can only make a claim for a cash refund under the SME scheme for R&D tax credits if it is a “going concern”.
What does “going concern” mean?
This basically means that the company can continue to operate for the foreseeable future and will be able to trade and settle its debts and obligations.
But HMRC will usually go by the latest published accounts, if they’re prepared under the going concern basis and there isn’t anything in the accounts to imply that the company’s survival depends on receiving R&D tax credits.
A company in administration or liquidiation cannot make a claim for R&D tax credits.
Key legislation: CTA09/S1046 and S1057