R&D tax relief: Claims are changing

3rd November 2022

Many businesses invest in science and technology research and development to improve their competitiveness. The UK Government encourages companies to develop new processes, products and services, as well as improvements to existing solutions by giving tax relief as a proportion of qualifying R&D expenditure.

From April 2023 there are a few changes to the rules:

  • Additional costs of datasets and cloud computing may be allowable
  • Subcontracted work will be limited to work undertaken in the UK
  • All claims will be required to be made digitally, potentially with additional information
  • Claims will need to name a senior company officer and any accountant/advisor will be identified
  • Companies will be required to inform HMRC of their intention to file a claim within 6 months of their year-end unless they have made a claim in the last three years

These measures are aimed at clamping down on fraudulent claims. Recently 8 people have been arrested, suspected of conspiring to submit fraudulent claims exceeding £16 million. Does your business receive cold calls from R&D ‘specialists’ promising you tax refunds without knowing anything about your circumstances?

This highlights the importance of making claims with the help of a trusted advisor with specialist R&D knowledge. Whitings LLP can determine if projects and costs are eligible and prepare narrative reports. We welcome the inclusion of our advisor position emphasising the value of high-quality advice. Working closely with us ensures we can advise across all areas of your business and personal tax affairs.

Disclaimer - All information in this post was correct at time of writing.
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