In recent years the cost of R&D tax relief has risen dramatically with projections that suggested it could reach above £10bn a year. However, it is no surprise that this year we have seen a fall in the number of claimants, quite dramatically when it comes to claims by SMEs which are down by 28%. Fuelled by rate changes and increased HMRC scrutiny, it is fair to assume that the number of claimants will drop even further, and the overall cost will either stay static or decline, even without any further change to the schemes. The actions taken by the previous government seem to have turned the tide and have started to make the numbers stack up.
With the 5,000 new tax compliance officers announced, HMRC is better resourced than ever to close the tax gap, ensure that taxpayer money is well spent and reduce fraud.
Here at Source Advisors, we know our SME clients are innovating every day, resulting in significant rewards under the R&D tax relief scheme. Unfortunately we don’t see those same companies capturing and commercialising that innovation with an IP strategy or through a patent. The barriers could be:
Projected for the tax year 2022-23
Projected for the tax year 2022-23
Source Advisors can help your business optimise the value of your R&D through tax relief schemes, including Research and Development Expenditure Credit (RDEC), the new merged R&D scheme and the Enhanced R&D Intensive Support (ERIS) scheme.
R&D is a good indicator of a company’s potential for a Patent Box claim – it’s a conversation that every R&D tax relief claimant should be having.
After what seems to have been a long time coming, we are finally reaching the point where the merged R&D expenditure credit scheme will become
On 27 February 2025 HMRC released new guidance that clarifies the treatment of subcontracted and subsidised R&D activity under the SME scheme. This guidance marks
Anyone involved in the R&D tax relief market will have experienced the volatility and changes the last two years have brought. Changes in rates, focus
