Upcoming R&D Changes – What You Should Know

From 1st April 2013 there’s expected to be a few changes to HMRC’s R&D Tax Relief scheme in the UK. These changes are coming as a result of the 2021 Autumn budget.

The upcoming changes are predicted to positively impact some of the companies claiming for R&D. However, over changes that are on the horizon could have significant impacts on the amount that businesses are able to claim for their R&D activities.

Significant R&D Tax Relief Changes

It looks like there’s going to be two main changes. These are:

Inclusion of cloud computing and data costs to be included in qualifying R&D expenditure

Presently cloud computing and data costs do not class as qualifying expenditure in R&D claims. This is expected to change on 1st April 2023, enabling companies to claim more benefits for their activities. Tech and media companies are anticipated to benefit enormously from this change.

Upcoming restriction for businesses conducting R&D activities overseas

Currently overseas R&D costs recharged to a UK claimant company qualify for R&D relief. However, it is likely that this is going to change on 1st April 2023. It is anticipated that from this date R&D activity will have to be physically located in the UK for the costs to qualify.

In line with this, businesses should now be assessing whether these changes could have any impact on their ability to claim R&D relief in the future. It is important for companies to keep up to date with changes to R&D regulations so that they can ensure that they are able to remain compliant under new rules.

Here to Help

Here at Enhance Consultants we specialise in R&D tax relief. We have experts on hand who can answer any questions you might have. We have a 100% success rate in helping clients obtain the maximum R&D tax benefits, and we’re only a phone call away.

Get in touch today.