Research & Development relief (R&D) upcoming government changes.
From April 2021 the government have introduced a cap to R&D claims for small to medium enterprises (SMEs), this is said to make genuine claims easier whilst preventing fraud.
As a result companies are to be limited to claim £20,000 plus 300% of its total Pay as you earn (PAYE) and National Insurance Contributions (NICs).
A company is exempt from the cap if:
In addition to above from 1 April, HMRC have also changed the way UK companies claim for their R&D Tax credits. Any claims for R&D will require the mandatory supplementary page to be completed with their tax returns. Further information is expected over the next few weeks.
To keep up to date with changes relating to R&D please visit: https://bit.ly/3sToblH
Contact us today on 01670 897407 for further assistance.