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Research and Development tax relief changes


Published: 20 Apr 2023

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Over the last year it has become clear that HMRC are increasing their scrutiny of Research and Development (R&D) claims, with a significant number of enquiry letters being sent out to companies in January 2023. This is a clear change of stance from HMRC in an attempt to suppress the level of fraudulent claims they believe are currently being submitted.

In addition to the above action, during Budget 2021, the government announced that it was changing how the Research and Development tax relief regime will work in the UK. The changes announced included:

  • A change to the R&D rates applicable to both Small and Medium Enterprises (SME) business, and those that claim under the Research and Development Expenditure Credit (RDEC) regime;
  • A refocus of the relief on UK R&D activities;
  • An expansion of the qualifying expenditure categories that can be included within UK R&D claims;
  • An extension of the meaning of R&D for UK tax purposes; and
  • The introduction of various additional requirements, introduced as 'anti-abuse' measures.

Register for this webinar where experts from the Mazars Innovation Incentives team will provide and overview of the current HMRC landscape, and a practical overview of the above changes, including how the proposals might impact your or your clients going forwards.