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Chartered Accountants since 1919
We support innovative clients through the various stages of their business lifecycle. Our experts focus on these key stages from a tax perspective where we often find specific tax advice is required.
Each company’s needs are unique. Therefore, we can provide flexible services tailored to meet your exact requirements. Our advisors will help you identify which incentive is appropriate for your company and will work with you to prepare and submit your research and development (R&D) claim.
In recent years, research and development (R&D) tax incentives have been subject to an extensive review by the Government, so as to ensure they remain fit for purpose and that valuable funding remains accessible. For accounting periods beginning on or after 1 April 2024, the current small and medium enterprise (SME) scheme and research and development expenditure credit (RDEC) will be merged into a single R&D regime.
HMRC has increased the level of scrutiny it applies to R&D tax relief claims as part of its attempts to tackle error and fraud in R&D claims.
With as many as 20% of R&D claims receiving enquiries from HMRC surrounding the eligibility of a claim for R&D relief, it is more important than ever that a company takes steps to ensure robust claims are prepared and submitted.
R&D tax relief credits offer valuable cash flow boosts through reductions in corporation tax liabilities and tax credit repayments. This allows companies to continue investing in R&D. There has been a sustained period of change and complexity, with HMRC undertaking a significant increase in audit activity regarding R&D claims, as well as making major changes to the overall R&D scheme which are likely to affect all claimants in one way or another.
The Enterprise Investment Scheme (EIS) provides UK tax advantages to those individuals who make equity investments in qualifying companies. Similarly to R&D tax credits, HMRC are increasing the amount of time spent on EIS compliance matters, driving up the cost of raising tax advantaged equity funding.
Innovative businesses usually rely heavily on talented individuals who need to be attracted, retained and rewarded appropriately. Share schemes can be used to achieve this. Establishing an equity reward scheme which is effective from a tax perspective is typically a major part of the building a successful leadership team.
The Patent Box taxes qualifying profits arising from the development and exploitation of patents at a lower rate than the mainstream corporation tax rate. Whilst this is largely seen as a relief aimed at major multinational corporations, we are seeing an increasing number of SME clients look more closely at claiming relief under the Patent Box.
We can advise if you are thinking about making a claim or are struggling with the claims process.
