22 February 2024Read more
Plans to significantly overhaul the current Research & Development (R&D) tax relief system were confirmed by the Government in November’s Autumn Statement.
These changes, primarily the introduction of a unified ‘research and development expenditure credit (RDEC)-like’ scheme, are set to substantially impact how businesses, especially small and medium-sized enterprises (SMEs), approach R&D tax credits.
At Condy Mathias we can provide assistance on any queries you may have about the changes to the R&D schemes. Contact us for more information.
The new scheme, applicable from 1 April 2024, merges the existing R&D tax relief frameworks into a single system. Key features include:
The subcontracting rules are perhaps the most significant change. Under the new regime:
These rules require a detailed assessment to determine the rightful claimant in each scenario.
For further guidance on these changes, Condy Mathias are here to help. Contact us today.
The Government has made an exception for loss-making R&D-intensive SMEs:
Businesses must start preparing for these changes now:
Review current R&D activities – Assess how the new rules will impact your existing and planned R&D activities, especially if you subcontract R&D.
Understand the financial implications – Analyse how the changes in credit rates and benefits for profit and loss-making companies will affect your financial planning.
Stay Informed – Keep an eye out for further legislative details and guidance to fully understand the nuances of the new regime. Our expert R&D team can keep you informed, contact us for more information.
The overhaul of the R&D tax relief scheme marks the end of a cycle of changes which began in 2021. While these changes promise to streamline the process, they also bring a host of considerations that could be problematic if not handled properly.
Our R&D tax relief experts can advise you on these changes plus any other questions you may have surrounding R&D tax claims. Contact us today for support.
20 February 2024Read more