Following the review of R&D tax reliefs announced by the chancellor in his 2021 Budget, the government have finally released updated measures - shedding some light on how innovative businesses will be impacted.
Whilst some changes are minor, some will have a significant impact on companies seeking to claim R&D tax relief (particularly those with overseas operations and new claimants). Plus, with HMRC being granted new powers to reject claims and claw back excessive tax credits, early preparation will be more important than ever, to ensure that your claim is successful.
The updated measures will apply for accounting periods beginning on or after 1 April 2023, and will affect companies that carry out research and development and claim Research and Development (R&D) Tax Relief under either of two schemes:
the Research and Development Expenditure Credit (RDEC)
the small or medium enterprises (SME) R&D relief
It will also affect some companies which have made a Patent Box election.
Full details of the new measures can be found here but please contact us to discuss your specific circumstances.
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