Start the year with some much-needed clarity on existing and upcoming changes to R&D tax relief.
With the landscape of R&D tax relief 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 for your clients.
IF R&D Tax Credits is here to help you remain informed and compliant. Let’s dive into the changes and understand the implications for both companies and accountants.
What are the changes to the R&D tax relief scheme?
Changes Effective in 2023:
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Revised Tax Credit Rates:
Impact on Companies: Financial impact, especially for SMEs, due to altered rates.Impact on Accountants: Need to re-evaluate financial strategies for clients. -
Expansion of Eligible Expenses to Include Cloud Computing:
Impact on Companies: Opportunity to claim for a broader range of expenses.Impact on Accountants: Requirement to update knowledge on eligible expense categories. -
Implementation of a Digital Submission Platform:
Impact on Companies: Streamlining of the submission process.Impact on Accountants: Adaptation to new digital processes and systems. -
Introduction of the Additional Information Form (AIF):
Impact on Companies: Increased administrative burden to provide detailed project information, cost breakdown by project and other additional detail.Impact on Accountants: Need for deeper involvement in clients’ technical project details, a better understanding of allowable costs and greater involvement in process.
Changes Expected in 2024:
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Merging of R&D Schemes:
Impact on Companies: Simplification of the claims process but potential confusion during the transition.Impact on Accountants: Need to understand the nuances of the merged schemes to provide accurate. -
Restrictions to Exclude Majority of Overseas Expenditure:
Impact on Companies: Need to adapt supply chains and potentially restructure R&D strategies to ensure costs remain allowable in the UK.Impact on Accountants: Need to adapt supply chains and potentially restructure R&D strategies to ensure costs remain allowable in the UK.
Get Ready: 8 Steps for Accountants at the Start of the Year.
1. Review AIF Requirements:
Familiarise yourself with the details required in the Additional Information Form to ensure compliance.
2. Update on R&D Definitions:
Ensure you have a clear understanding of the latest definitions and criteria for R&D activities under the new, merged scheme.
3. Prepare for Rate Changes:
Be ready to advise on the financial implications of the revised tax credit rates, especially how they apply in the context of the merged schemes.
4. Educate Yourself on Eligible Expenses:
Learn about the expanded scope of eligible expenses, including cloud computing costs.
5. Adapt to Digital Processes:
Get acquainted with the new digital submission platform to ease future submissions.
6. Be Prepared for Merged Schemes:
Whilst the new merged scheme is still only a proposal and hasn’t yet been passed through as legislation, it makes sense to learn more about the specifics of the new scheme and understand what this might mean for claim submissions.
7. Communicate with Clients:
Proactively communicate with your clients about these changes. Prepare to answer their questions and guide them through the transition to the merged scheme.
8. Seek Expert Help:
Participate in relevant training sessions and seminars that focus on the new R&D tax relief scheme. Staying informed through professional development will be key in 2024.
By following these steps, accountants can position themselves and their clients for a smoother transition into the new year with the updated R&D tax relief framework. The merged schemes, while potentially challenging at first, offer an opportunity for more streamlined processes and clarity in the long term.
We Can Help: Partner with IF R&D Tax Credits
More and more accountants are now using IF R&D Tax Credits to help them deliver better results for their clients. They understand that with us, it’s about building a claim to withstand scrutiny, from the start.
By working with us, you ensure:
1) EXPERT GUIDANCE: Our Technical Consultants are all qualified staff with industry experience
2) COMPREHENSIVE SUPPORT: From understanding the AIF to adapting to digital submissions, we provide end-to-end assistance. Our team remains up-to-date with the latest changes, regulations and guidance, ensuring clients always benefit from the most current advice.
3) SERVICE SATIFACTION: We realise you have a business to run, so we do most of the work for you, making the whole process painless.
4) MINIMISE RISK: With our expertise, reduce the risk of inaccuracies in R&D tax claims. We stand behind every claim we do for our clients – In the event of an enquiry, we will defend your claim free of charge until an agreement with HMRC is reached.
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.