R&D credit uptake slow
The uptake of more than £500m in research and development tax credits has remained slow, despite a recent Revenue guidance note, because businesses are put off by the complexity of making a claim.
The uptake of more than £500m in research and development tax credits has remained slow, despite a recent Revenue guidance note, because businesses are put off by the complexity of making a claim.
Link: R&D tax credits increased
The guidance note, issued following the Budget in April, was expected to widen the scope of businesses claiming tax credits by revealing businesses outside traditional ‘research’, such as laboratory work, qualified for the scheme.
One month on, accountants have been urging their clients to claim the credits but say the response has been limited. David Cobb, head of the R&D practice at Deloitte & Touche, said the tax return form was longer and more complex. ‘We are seeing a harsher response from the Revenue asking for more detail and underlying information,’ he said.
Ernst & Young R&D specialist Paul Harris said uptake, especially among large companies had been slow. He said: ‘We’re having to push with our own clients but we have been having difficulties with individual inspectors. The Revenue is being very strict on what it means by R&D.’
The response at KPMG was similar. Tax partner David O’Keeffe explained: ‘The compliance costs and complexity of claiming is putting a lot of companies off. It’s a lot of extra work for a relatively small benefit, especially for larger companies.’
The numbers you crunch tell a story. Your expertis...
21yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe amount of tax saved by businesses through HMRC’s Patent Box scheme has increased by 23% over the last five years, from £1.14 billion in 2017/18 to...
View articleUK Chancellor Jeremy Hunt has hinted at the possibility of further tax cuts in the upcoming spring Budget, during his time at the World Economic Forum...
View articleThe legislation, which introduces a global minimum tax of at least 15% for multinational enterprises, aims to limit tax competition and ensure large c...
View articleThe upcoming tax changes in 2024 will significantly impact businesses and individuals in the UK. Accountants play a crucial role in helping clients na...
View articleAccountants must stay vigilant, adapt their tax strategies to evolving regulations, prioritize transparency, and foster collaboration with tax authori...
View articleAs the government prepares for re-election, PM Sunak promises to control spending in order to bring forth tax cuts next year Read More...
View articleThe Office for National Statistics revealed that the UK economy shrank by 0.3% in March after the economy grew by 0.1% in the previous three months Re...
View articleAs the Spring Budget approaches, dissenters of the UK government’s increasingly complex contractor legislation are baying for change. HMRC has already...
View article