R&D Tax Credits…beyond the headlines

Visiativ is here to help you remain informed and compliant. Let’s understand the implications for both companies and accountants.

Q: With all the talk about HMRC cracking down on R&D tax claims, should we be worried about making a claim for our clients?

• No, there’s no need for concern as long as you’re making honest and legitimate claims. The crackdown is focused on fraudulent activities, not on genuine R&D efforts. The scheme is well-established and supported by the government to continue aiding innovation.

Q: What changes have been made in the new merged R&D tax scheme?

• The new scheme simplifies the claiming process by unifying the rules for most businesses, and in some cases, removing the headache of navigating between different schemes. It also abolishes restrictions related to grant-subsidised projects, making it easier for companies to claim the relief they deserve. Loss-making, R&D-intensive SMEs will get extra support and benefit from a higher payable credit rate of 27%.

Q: How does the government view R&D and the tax relief scheme?

• The government highly values R&D for its role in driving economic growth and innovation. This is reflected in their continued support and commitment to the scheme, ensuring that it benefits companies engaged in genuine R&D activities.

Q: What is the Government’s view on claims specialists?

• HMRC recognises that agents play a vital role in the R&D tax reliefs regime (with more than 90% of claimants represented by one) and that high-quality advice from agents enables businesses to get their claims right. The right partner will help you navigate the complexities of the claim process, ensure full compliance with the regulations, and provide necessary support if HMRC raises any inquiries.

Q: What should we look for in an R&D tax partner?

• Choose an advisor with a strong background in R&D taxation, proven experience, and positive client feedback. Check their background and technical qualifications. Ask to see case studies and client feedback. Ensure they are well-versed in the legislation and capable of defending a claim if necessary.