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R&D tax relief - new advance assurance pilots
Research and development tax reliefs have been around for over 10 years now, providing companies with either a super-deduction against their taxable profits for qualifying R&D costs or, in the case of loss-making companies, a payable tax credit.
R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology. However, the regime is not restricted to companies with teams of scientists beavering away in secret laboratories. If you are developing new equipment or even software which requires the resolution of fundamental technological uncertainties then you may be able to qualify for these valuable reliefs.
However, in order to provide companies with greater certainty that their R&D falls within the above definition, HMRC have announced a new R&D voluntary assurance pilot. It will be available to companies with less than 50 employees who are about to make their first ever R&D claim. The aim is for the company and HMRC to agree a basis for the first R&D claim and the claims for the following two years.
So good news all round but do contact us if you are undertaking such R&D. We can guide you through the legislation, seek to maximise your claim and keep you abreast of further improvements to the regime which are expected to take effect from 1 April 2012. Watch this space!
