6 May 2024
The current R&D tax relief landscape…beyond the headlines
6 May 2024
3 min read
You may have noticed recent headlines about HMRC increasing scrutiny on R&D tax claims and the introduction of a new merged R&D tax scheme that may not benefit all companies. This has led some companies to delay their R&D tax relief claims due to concerns about the time and effort required and potential risks.
Read on – to see past the headlines and focus on the facts instead…
Q | With all the talk about HMRC cracking down on R&D tax claims, should we be worried about making a claim?
No, there’s no need for concern as long as you’re making honest and legitimate claims. The crackdown is focused on fraudulent activities, not on genuine R&D efforts. The scheme is well-established and supported by the government to continue aiding innovation.
Q | What changes have been made in the new merged R&D tax scheme?
The new scheme simplifies the claiming process by unifying the rules for most businesses, and in some cases, removing the headache of navigating between different schemes. It also abolishes restrictions related to grant-subsidised projects, making it easier for companies to claim the relief they deserve. Loss-making, R&D-intensive SMEs will get extra support and benefit from a higher payable credit rate of 27%.
Q | How does the government view R&D and the tax relief scheme?
The government highly values R&D for its role in driving economic growth and innovation. This is reflected in their continued support and commitment to the scheme, ensuring that it benefits companies engaged in genuine R&D activities.
Q | What is the Government’s view on claims specialists?
HMRC recognises that agents play a vital role in the R&D tax reliefs regime (with more than 90% of claimants represented by one) and that high-quality advice from agents enables businesses to get their claims right. The right partner – such as Visiativ – will help you navigate the complexities of the claim process, ensure full compliance with the regulations, and provide necessary support if HMRC raises any inquiries.
In conclusion: “Keep Calm and Carry on” seeking funding for your innovation projects – but choose your partner wisely!
You’re in good hands with ABGi.
If you have any questions relating to R&D tax relief or wish to discuss the implications of recent changes to the R&D tax relief scheme on your own claims, please get in touch with ABGi, and a representative will get back to you to discuss your unique needs and explain how we can assist.