Research and Development Tax Credits - Changes from April 2023
Research and development tax credits relief will see changes in the way businesses apply for the relief, from April 2023. Additionally, the introduction of new qualifying measures will make the relief more accessible to a wider range of businesses.
Changes when submitting research and development tax credits claims
In order to tackle the abuse of reliefs, HMRC has confirmed that all future claims for R&D reliefs must be submitted digitally.
Companies will need to let HMRC know in advance that they plan on making a claim unless they are new claimants or have not claimed in the previous three accounting periods.
They will need to do so within six months of the end of the period the claim relates to, via the digital service.
Changes will affect companies claiming research and development expenditure credit and SME R&D tax relief. Companies that have made a Patent Box election may also be affected.
Changes to qualifying for R&D relief
Business will also need to apply for all R&D reliefs online and pre-register for claims. These changes will apply to all businesses, regardless of size.
The new rules will prevent companies from benefiting or having more time to make a claim if they fail to register or notify HMRC that they are dormant.
SMEs will also gain a level of protection from the new measures. HMRC has stated that companies growing/transitioning from the SME to the RDEC scheme will benefit from one-year protection. As a result, companies can keep their SME status if they exceed the size threshold for an SME.
For more information on research and development tax credits changes, get in touch with us.
Call us on 01704 891676
Email us at firstname.lastname@example.org
Send us a message via our contact page
This guide is an informative piece and does not constitute tax advice for individual matters.