Government launches consultation on R&D relief
The government has launched a consultation on simplifying the UK’s research and development (R&D) tax relief system, to drive innovation and help the economy grow.
The eight-week consultation will run until 13th March 2023, and will set out proposals on how a single scheme could be designed and implemented.
This would replace the two R&D tax relief schemes currently in place – the Research and Development Expenditure Credit scheme and the small and medium enterprises R&D relief.
This is part of the government’s ongoing R&D tax reliefs review, and follows changes announced at Autumn Statement 2022 where the generosities of the two R&D tax schemes were broadly aligned.
If the new scheme is implemented as a result of this consultation period, it will be expected to be in place from 1st April 2024.
Victoria Atkins MP, Financial Secretary to the Treasury, said:
“We are focussed on growing the economy – with thriving businesses bringing more jobs, higher pay and more tax revenue to fund our precious public services. Getting R&D tax relief right and fit for the future sits at the heart of making sure the UK remains a competitive location for cutting edge research – helping new firms grow.”
“I welcome views on the option to simplify the scheme, especially from those who have experience of the existing tax reliefs.”
Danielle Harvey, Director at HTB Accountants, has reiterated the importance of an R&D claim.
“It’s imperative that the information in your R&D claims are correct. If you need any advice on the matter, please get in touch with us so that we can help you through the process.”
For more information, visit the Gov.uk website or get in touch today to learn more about R&D relief for your business.
