New changes to the research and development (R&D) tax credits regime have been announced, with an estimated 90,000 companies benefiting.<\/p>\n
<\/p>\n
The changes will require people to apply for all reliefs online and pre-registration of claims irrespective of the company\u2019s size.<\/p>\n
Launching on 1 April 2023, companies claiming R&D expenditure credit (RDEC) and SME R&D relief will be impacted, as well some which have made a Patent Box election.<\/p>\n
Additionally, all claims to the R&D reliefs will have to be carried out digitally. This applies for either a deduction or a tax credit.<\/p>\n
How can you inform HMRC?<\/strong><\/p>\n HMRC will need to be notified in good time if you plan to make a claim.<\/p>\n This must be done using a digital service, within six months of the end of the period to which the claim concerns.<\/p>\n However, it will not be necessary for those claiming in one of the prior three periods to pre-inform.<\/p>\n The time cap for making a claim will also change to two years from the end of the period of account to which they relate, as opposed to 12 months from the legislative filing date.<\/p>\n This aims to stop businesses which do not get a notice to file, because they either fail to register or alert HMRC that they are inactive, from getting extra time to make a claim.<\/p>\n How will SMEs be affected?<\/strong><\/p>\n An additional measure will be launched to protect SMEs which are mid development, causing them to essentially drop out of the SME criteria.<\/p>\n Businesses transitioning from the SME scheme to RDEC will be safeguarded, meaning that where an SME within a group surpasses the size limits for an SME, all firms in the group will keep SME status for one subsequent year.<\/p>\n Currently, while the corporation itself preserves its status, others in the same group lose theirs immediately.<\/p>\n For companies who provide external workers to carry out R&D, spending on those employees will only be eligible to the degree that their earnings are taxed through PAYE, or attributable to R&D activity outside the UK covered by the new section 1138A.<\/p>\n Need advice on R&D tax credits? Contact our team today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" New changes to the research and development (R&D) tax credits regime have been announced, with an estimated 90,000 companies benefiting.<\/p>\n","protected":false},"author":2,"featured_media":4788,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,31,110,7,27],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4786"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4786"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4786\/revisions"}],"predecessor-version":[{"id":4787,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4786\/revisions\/4787"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/4788"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}