Patent Box Relief: HMRC's New Compliance Guidelines Patent Box Relief is a government incentive which allows UK corporations who own qualifying intellectual property, to avail of a 10% corporation tax rate, rewarding and promoting innovation within the UK. According...

HMRC have now introduced a claim notification form. This notification must be submitted in advance of Research and Development Tax Relief Claims. For accounting periods beginning on, or after 1 April 2023, a claim notification form may need to be submitted to HMRC before a Research and Development Tax Relief claim can be made. For normal 12 month accounting periods, the first year end for which a claim notification is required would be 31 March 2024.

We have asked one of our resident tax experts, Gary Craig, questions relating to changes in HMRC’s policies that are currently affecting Research and Development Tax Credit claims. We talk about ensuring accuracy of claims submitted, documenting Research and...

In July 2023 HMRC published their Compliance Approach to R and D, in which they committed to work with agents to improve the quality of R and D claims. Following this HMRC have set up the R and D Agent Compliance Management (ACM) Team. HMRC will invite agents into the ACM and work with them to understand their processes and discuss their claims. This will allow HMRC to suggest improvements to processes and the supporting information provided to HMRC. PGR Advisory are regulated by the Institute of Chartered Accountants Ireland (ICAI) and are registered with HMRC as an agent.

In 2022 the House of Lords Finance Bill Sub-Committee was tasked with looking at the reforms to  R&D tax relief contained in the draft Finance Bill 2022-23. Their report was compiled after hearing evidence from businesses, tax professionals, academics and...

2023 has already seen several changes to the R&D tax relief schemes. However, there is an additional change coming into effect on 1 August 2023.  Any company submitting a claim on, or after 1 August 2023 must also submit an additional information form to HMRC....

Advance Notification of R and D Claims R and D claims have evolved in recent years, with HMRC implementing updates to the claim process. Let's discuss these revisions which HMRC have introduced into the R and D Claim Process and the reasons behind HMRC's adjustments....

Due to the increasing level of fraudulent R&D tax relief claims HMRC paused all R&D repayments at the end of April. They have since re-started issuing repayments, however these are now subject to additional checks. HMRC previously aimed to process R&D...

Following the changes to the R&D legislation announced at the Spring Statement the draft legislation has now been published. The changes are to take effect for accounting periods beginning on or after 1 April 2023. The main changes are noted below. UK Only R&D...

A claim for R&D tax relief under the Small and Medium Sized Enterprise (SME) scheme cannot be made for subsidised expenditure.  It may be possible to make a claim under the less generous Research and Development Expenditure Credit (RDEC) scheme.  There is a...

With a rise in fraudulent R&D claims HMRC are now increasing their resources to investigate more claims.  Given the higher level of scrutiny you may be considering using an R&D specialist to prepare your clients’ claims. Given the reputation of R&D firms...

Companies already making R&D tax relief claims are familiar with the benefits of doing so, either a tax reduction or a cash credit.  For directors and shareholders this benefit may translate into a bonus or additional dividends.  However staff may not be aware of...

There are two different R&D schemes, the Small and Medium Sized Enterprises (SME) Scheme and the Research and Development Expenditure Credit (RDEC) scheme. The two schemes work very differently, but both aim to reward innovation by reducing corporation tax.  In...

The past year has been difficult for many businesses, with closures and staff isolating due to Covid as well as supply chain issues caused by Brexit.  Many companies may have suffered a corporation tax loss, possibly for the first time. The addition of an SME R&D...