There has been a lot in the news recently about the future of R&D tax credits. However, the changes won’t affect how we submit claims for our clients, and we are continuing to do so.
You may have heard that HMRC has been cracking down on R&D and it is true there are more enquiries from HMRC where it is taking a tougher line. This means that we need to have much greater clarity on the detail in the claim and match it up to HMRC guidance. However, most of the required ‘extra’ detail has always been part of our process and service, so it should only amount to a small difference for our clients.
One area that HMRC is particularly focused on is the ‘competent professional’. So, going forward, we will need to include more detail about our clients’ successful careers and business dealings, to demonstrate to HMRC that they are the competent professionals we know them to be.
There is still a real benefit in making a claim – we just might also ask a few more questions than before.
Other changes that are coming include a small reduction in the claimable amount from March 2023 and a notification period for new and delayed claims. As such, we recommend starting any new claims as soon as possible after your year-end.
Overall, the landscape still looks bright and R&D tax relief remains a valuable incentive for all the cutting-edge work we know our clients do.
If you would like to know more about R&D tax credits or discuss making a new claim, please contact RfM Transform.