March 31 year-end: use it or lose it.
As a business with a March year-end, you’ll want to ensure you use all the tax reliefs available to you before your current tax year ends on 31 March 2024. If you miss the deadline to make a claim, you lose your ability to claim for previous years.
For example: R&D claims for accounting periods ended 31 March 2022 must be lodged with HMRC before 31 March 2024, or you will lose the ability to claim for that period.
It pays to be prepared.
The landscape of R&D tax relief is undergoing substantial changes; it’s crucial that you stay informed and prepared, as these are set to impact how you plan and claim R&D tax credits.
IF R&D Tax Credits is here to help you remain informed and compliant. Let’s dive into the changes and understand their implications for your business.
R&D tax relief changes – everything you need to know
1 April 2023
Change
- SME rate reduced from 130% to 86%
- SME cash out rate reduced from 14.5% to 10%
- New R&D intensive rate equaling 27% tax benefit
- RDEC increased from 13% to 20%
Impact
- Potential reduction in claim size.
- Requirement to establish eligibility for new R&D intensive rate.
- Planning required around use of tax benefit against future tax position.
8 August 2023
Change
- Introduction of AIF – mandatory compliance form completion
Impact
- Increased workload for all claimants.
- Claims rejected if not completed.
1 April 2024
Change
- Exclusion of overseas expenditure
Impact
- Potential reduction to claim size and therefore planning required.
Accounting Periods from 1 April 2024
Change:
- Merger of SME and RDEC schemes
- Increase to R&D intensive threshold eligibility
- Further proposed reduction to SME rate
Impact
- New rules to learn and additional complexity around claim profiling
We can help.
Don’t miss your March year-end deadline! Contact us now to make sure your deadline can still be met, and you don’t miss out on a significant cash windfall.
Once you’ve got us on board, we can help you create the processes you need to prepare your company for the increased level of complexity in claiming R&D tax relief following the recent changes.
If you have any questions about R&D tax relief or want to talk about how the recent changes to the R&D tax relief scheme might affect your claims, please contact IF R&D Tax Credits. A representative will get back to you to discuss your specific needs and explain how we can help.
Contact us here for further information.
