The UK government's Research & Development (R&D) tax relief scheme, particularly the relief for small and medium-sized enterprises (SMEs), has been a cornerstone of the incentivisation of innovation in SMEs. However, in recent years there has been a growing concern that HM Revenue & Customs may have significantly underestimated both the level of risk of abuse and the costs of the scheme. This raises questions about the effectiveness of the program and its potential impact on both taxpayers and the UK's innovation ecosystem.
HMRC's underestimation of the R&D SME relief scheme's complexities has created challenges. While addressing abuse is important, finding a balance between robust checks and avoiding unnecessary burdens for legitimate businesses is essential. Open communication, collaboration, and targeted support are key to ensuring the scheme remains an effective tool for fostering innovation in the UK.
Friend Partnership is a forward-thinking firm of Chartered Accountants, Business Advisers, Corporate Finance and Tax Specialists, based In The UK
Registered to carry out audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales
Company registration number: 07746831