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Following concern over a cut in R&D tax credits funding for small businesses, the Government has announced a review of the policy.<\/p>\n
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An eight-week consultation, which runs from 13 January to 13 March 2023, sets out proposals on how a single scheme would replace the two R&D tax relief schemes, the Research and Development Expenditure Credit (RDEC) and the small and medium enterprises (SME) R&D relief.<\/p>\n
A consultation document from the Government published this month acknowledged there was \u201cmerit to the case for further support\u201d to SMEs, particularly in the life sciences sector.<\/p>\n
Incentives<\/strong><\/p>\n In his Autumn Statement, Chancellor Jeremy Hunt moved investment incentives towards larger companies causing concern among trade bodies.<\/p>\n It was announced that on 1 April the RDEC rate will be increased to 20 per cent from 13 per cent, the SME deduction rate will be reduced to 86 per cent from 130 per cent, and the SME credit rate decreased to 10 per cent from 14.5 per cent.<\/p>\n The consultation invites views on the design of a potential single R&D tax relief scheme and the Government says it welcomes views from businesses, representative bodies and accountants informed by experience with the existing R&D schemes<\/p>\n However, it is expected the level of support for SMEs following the consultation, will still come under what it was prior to the Autumn Statement.<\/p>\n Changes also announced by the Chancellor in November, included new eligibility criteria from 1 April 2023:<\/p>\n No overseas R&D<\/strong><\/p>\n Subcontracted spend from outside the UK will no longer be eligible for inclusion in R&D claims.<\/p>\n The aim of this is to bring more R&D activity to the UK and incentivise companies to move operations into the UK.<\/p>\n Cloud costs will now be eligible<\/strong><\/p>\n Currently, costs relating to cloud-based technology can\u2019t be included in an R&D claim.<\/p>\n From April 2023, cloud-based computing costs such as AWS will be eligible for inclusion. Need help with claiming R&D tax credits? Contact us today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Following concern over a cut in R&D tax credits funding for small businesses, the Government has announced a review of the policy.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-19733","post","type-post","status-publish","format-standard","hentry","category-matt-storey"],"yoast_head":"\n
\nOther changes in April include:<\/p>\n\n