Talking Tax: February 2022
Author: Adam Spriggs, R&D Tax Director
It’s been a great start to the new year for the Zeal R&D Tax team. As work begins on existing clients developing medical devices as well as another in the beauty industry, we are also taking on new clients in the software industry as well as one developing lighting equipment.
Beyond client work, contributions are being made to HMRCs proposed changes to the R&D legislation from 2023 that will require all companies to ‘pre-apply’ for their R&D submissions. This will naturally create an increased burden on the claiming propose and so having involvement in this process is key to ensuring that HMRC create a workable process that doesn’t prejudice the majority of claimants.
Case Study: R&D Enquiry
Recently an accountant who had submitted R&D claims for many years had received their first enquiry, and sought help after becoming concerned by the questions being raised by the inspector. They reached out and Zeal were able to talk the accountant and their client through what information the inspector was after and potentially where there were gaps in the information that had been provided and why some activities may not have qualified as originally claimed. A response was drafted addressing the queries, which was subsequently accepted by the inspector who then closed the enquiry.
You may also like to read
Newsletter: R&D Tax Credits Update (Issue 1)
Newsletter: Capital Allowances Update (Issue 2)