R&D Tax Reliefs Update

R&D tax reliefs are often incorrectly overlooked by business owners as not applicable and therefore investigations into the benefits are not felt by many. Innovation equals growth and development which translate into efficiency and effectiveness that ultimately filter across all elements of society, which is why the government puts so much support into R&D.

Have your say on the future of R&D tax reliefs
In the budget the Government announced a target of raising total investment into research and development to 2.4% of UK GDP by 2027. This is an ambitious target, so to ensure a fair system, a consultation with stakeholders has been launched with the aim to ensure that R&D tax reliefs are current, competitive and the appropriate recipients are beneficiaries of the reliefs. The consultation will investigate private sector R&D investment and how businesses are supported or influenced by R&D schemes. This will help to identify where changes may be required to hit the targets set. You can take part in the consultation here.

R&D investigations are on the rise
As keen as the government is to pour funding into genuine R&D schemes, it is keener to ensure the funds end up with the right businesses. HMRC recently bolstered it’s R&D tax investigations team by around 100 people and we are seeing first hand and hearing anecdotal evidence of a rise in investigations. This only serves to highlight the importance of having a reputable firm handle your claim from the outset so you don’t end up with a nasty surprise a couple of years down the line. Our R&D team here are in constant contact with clients and HRMC to ensure that relevant claims are made and are successful.  We help to focus on your innovation to aid your growth. You can find out more here.