During the recent consultation undertaken by HM Revenue and Customs (HMRC) into the R&D tax regime it has been announced that only 6,500 companies in the UK that are claiming the generous relief under the scheme for small and medium sized entities.
HMRC are seeking to increase the number of claimants by:
- Increasing the super-deduction available on qualifying R&D expenditure to 200% with a further increase to 225% from 1 April 2012;
- Removing the de minims limit of £10,000 qualifying expenditure;
- Withdrawing the upper limit on tax credit claims of the company’s PAYE and NIC liabilities; and
- Piloting a voluntary advance assurance process to give start-ups and smaller companies early certainty about their eligibility for the relief.
In order to increase the number of claims made to HMRC for R&D tax relief we are seeking to work with other accountants, offering a ‘bolt-on’ service, to help them add value for their clients. If you would like any further information about this service then please contact Sara Crowther.