Beware HMRC’s New Approach to R&D Tax Credits Enquiries
HMRC’s new approach to R&D Tax Credits enquiries has had a significant impact causing anxiety amongst businesses and advisors alike. Targeted Enquiries HMRC has started to implement their stated intention to target businesses based on their SIC code and claim size. Advisors report receiving multiple enquiries into R&D claims using templated letters that largely ignore […]
R&D Tax Credit Fraud Is On The Rise
Lord Turnbull, former Cabinet Secretary under PM Tony Blair and current crossbench peer in the House of Lords says of the recent spike in claims of tax credits “This is a major financial scandal…What we have is a system which is basically a help-yourself”. “There is no way that R&D has grown 50% compound for […]
Changes to the Research and Development Schemes – Autumn Statement 2022
The Corporation Tax system encourages R&D via two different schemes. At present the enhanced expenditure scheme for small and medium-sized enterprises increases qualifying expenditure by 130%, so that for every £100 spent, the company enjoys a deduction of £230 from taxable profits. When applied, this may create a loss or further increase a loss for […]
R&D Tax Relief reforms. What do they mean for your company?
Coming on the heels of the introduction of HMRC’s R&D taskforce, It comes as no surprise that the recently published draft R&D legislation includes many provisions to tackle abuse of the system. HMRC is all too aware that some unscrupulous individuals have set themselves up as R&D specialists without any actual knowledge of the rules […]
Research and Development Tax Relief Reform
General description of the measure Following the review of R&D tax reliefs launched at Budget 2021, the government announced the following measures, which will apply for accounting periods beginning on or after 1 April 2023. Policy objective The government has an ambitious target to raise total investment in research and development to 2.4% of UK GDP by […]
Spring Statement 2022 – Full In Depth Look
The Chancellor presented two Budgets in 2021 in which he set out a great many details of the tax rates and rules that will apply until April 2026. The 2022 Spring Statement was expected to review the economic situation and adjust forecasts. It was not supposed to include anything significant about tax. Of course, things […]
What HMRC giveth, HMRC taketh away…
HMRC enquiries into R&D claims are on the increase. In March this year, HMRC proudly announced the creation of their R&D task force. Its job is to undertake enquiries into R&D claims that companies have made to ensure that they are not fraudulent or incorrect. Sure enough, in recent months we have noticed a marked […]
R&D Tax Relief – a Q&A with Friend Partnership
Innovative SMEs can secure valuable tax relief through the R&D Tax Relief scheme. David Gillies, Head of Tax at Birmingham accountants Friend Partnership, offers expert R&D tax advice to help you understand how your business can benefit. Can you tell us more about R&D tax relief and how it works? The R&D relief rules are […]
R&D Tax Credits – what are you waiting for?
Friend Partnership Ltd asks if SMEs are waiting too long to reap the rewards of R&D tax credits… For any business undertaking qualifying R&D activity, tax credits can be a very welcome cash flow boost. In fact, the current R&D regime is hugely beneficial – the tax deduction uplift is currently 130% with a payable […]
