Changes are coming to the R&D tax relief schemes in respect of accounting periods beginning after 1 April 2023. We have known this for a while but have been awaiting more details on what these changes will actually look like. Now that the draft legislation for the forthcoming Finance Bill 22/23 has been published, we have this detail – assuming nothing changes following the consultation process which ends on 14th September.
There are quite a few changes planned but the ones likely to cause the most impact are listed below:
Qualifying Expenditure
Additional costs which will be allowable from the above date:
Additional restrictions which will be in place from the above date:
***Cost of R&D or availability of workers will not be good enough reasons for R&D to be undertaken outside of the UK***
Claim Notification
Currently, an R&D claim may be made up to 1 year from the tax return statutory filing date (usually 2 years from the end of the accounting period). This will be changed to 2 years from the end of the accounting period which will make no difference to most companies. The big difference here is that a company wishing to claim R&D tax relief must notify HMRC of their intent no later than 6 months after the end of the accounting period or they will not be able to make a claim even if they are within the 2-year time limit. The exception to this is companies which have made an R&D claim within the last 3 accounting periods.
Collection of overpaid R&D tax relief by HMRC
HMRC to have greater powers with regards to collection of overpaid R&D tax relief.
If you have any questions on this blog or anything R&D related, please contact us at [email protected].
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