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Major changes to the R&D tax credit scheme: Reporting
08 June 2023
August 1st is getting closer. The changes are significant and all R&D claims, irrespective of which tax year they are for, must meet the new requirements.
In this blog we look at the reporting requirements for ‘Qualifying expenditure’. This must be broken down by project. Also, the amount of qualifying indirect activity must be noted.
‘Qualifying expenditure’
- cloud computing costs, including storage, for accounting periods beginning on or after 1 April 2023
- data licence costs, for accounting periods beginning on or after 1 April 2023
- externally provided workers
- payments to participants of a clinical trial
- software
- staff
- subcontractor costs
Remember – HMRC will reject incomplete R&D tax credit submissions. And, of course, these are not the only changes.
What does this mean for you?
- Reporting for R&D tax credits has become far more complex. Breaking down expenditure by project and categorising it accurately will be challenging for those accountants unfamiliar with R&D projects.
- You might need to rely more on the client but this can bring its own risks. Are you confident they will submit their R&D tax credit application accurately, is their record – keeping adequate. Will they push back and expect you to do it?
- This is likely to take more time to do – more cost for you and/or your client. (You might remember us as Jumpstart and latterly, ABGI).
In the UK, Visiativ has been managing R&D tax credit claims for over 15 years. (You might remember us as Jumpstart and latterly, ABGI). We can support you through these changes – with advice and guidance or by managing part or all of the process.
