Two developments in R&D tax incentives could have a significant impact on businesses claiming the relief. From 1 April 2020, rules intended to prevent abuse of the SME R&D tax credit will limit the credit to three times the claimant’s total PAYE and NICs liability for that year. This could particularly impact businesses where staffing costs are not a significant element of R&D expenditure. HMRC has also developed a digital form designed to prevent the poor quality information provided by many claimants for R&D relief. While this will set a much more explicit expectation of the information that should be submitted, the forms may only be used by companies that can cover at least 50% of their R&D claim costs within ten projects.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Two developments in R&D tax incentives could have a significant impact on businesses claiming the relief. From 1 April 2020, rules intended to prevent abuse of the SME R&D tax credit will limit the credit to three times the claimant’s total PAYE and NICs liability for that year. This could particularly impact businesses where staffing costs are not a significant element of R&D expenditure. HMRC has also developed a digital form designed to prevent the poor quality information provided by many claimants for R&D relief. While this will set a much more explicit expectation of the information that should be submitted, the forms may only be used by companies that can cover at least 50% of their R&D claim costs within ten projects.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
90a1d87b-c1b5-43c3-a720-cd324830adee.tmb-editorspic.jpg?sfvrsn=1b2d0a7e_1)
