Talking Tax: April 2023
Author: Adam Spriggs, R&D Tax Director
HMRC recently revised a lot of their general R&D guidance.
Most of it was straight forward and not necessarily ‘news worthy’, but there were some aspects that people should be aware of. One very welcome change is the listing of sectors that are “rarely eligible” to make claims.
After hearing of many companies in these sectors claiming and advisors advocating their eligibility, it’s great HMRC are doing more to provide clarity on these sectors, which include:
Care Homes Childcare Providers Personal Trainers Wholesalers and Retailers Pubs Restaurants
Whilst these sectors can make claims, it is highly unlikely that their day to day business activities would meet the R&D project eligibility requirements.
A curious revision is that bonuses are no longer an eligible cost to be included within staffing costs. Bonuses have long been included as “earnings consisting of money” and “paid because of the director’s or employee’s employment” (CTA2009 s1170) as well as what is included in CIRD83200. This is one revision that is sure to be contested with HMRC as they have previously stated that guidance is only that – guidance.
New Forms
As HMRC continue steps to crack down on the perceived abuse of the scheme in recent years, a new information form has been introduced which will need to accompany all R&D claims submitted from 1 August 2023, irrespective of the accounting year end. This form includes basic info such as PAYE and VAT numbers as well as the agent involved.
If you would like to discuss any of the above changes or any of the others detailed, please get in touch.
For help with R&D Tax Credits, contact Adam Spriggs on adam@gozeal.co.uk
You may also like to read
Newsletter: R&D Tax Credits Update (Issue 1)
Newsletter: Capital Allowances Update (Issue 2)