Digital Tax Matters ’s Post

New R&D tax relief guidance available! For accounting periods beginning on or after 1 April 2024, a new merged scheme for research and development tax credit comes into force. The new scheme reduces the amount of benefit that would generally have been received under the old scheme. Loss making R&D intensive SME companies can also benefit from additional support through Enhanced R&D Intensive Support (ERIS). HMRC has published guidance on how to claim, but if you need any help with an R&D claim or wonder if your business could make a claim, please contact us. Guidance ➡️ https://ow.ly/lcc050Rg45E #HMRC #RandD #ResearchandDevelopment #tax #taxrelief

We also got a new "corporate tax roadmap" as part of yesterday's #Budget. It was a bit of a damp squib, in that for the most part, it told us that the Government will leave the corporate tax system as it is. This instinctively feels like something of a missed opportunity. Many practitioners will have their own list of ways in which corporation tax could be rationalised and simplified. At the risk of outing myself as a bit of a nerd, I know I do... That said, if political considerations mean that reform isn't practical, then there is a lot to be said for stability and predictability, as it helps businesses to plan with a degree of confidence that things won't change. Particularly after a number of years which have been anything but predictable. #corporatetax https://lnkd.in/ep8eAhNK

Adapting to Overhauled R&D Tax Relief: Practical Insights The Autumn Statement and Finance Bill solidified significant shifts in R&D tax relief, effective from April 1, 2024. Merging existing schemes, the changes introduce complexities, notably in contracted-out R&D. Aligning with global standards, the restructuring aims to streamline the relief process. Businesses must navigate the alterations, understanding nuances in claiming relief, particularly in overseas expenditure and compliance requirements. How can companies efficiently adapt to these transformative changes in R&D tax regulations? Read more: https://bit.ly/43h6PCM #RDTaxRelief #FinanceBill #HMRC #BusinessCompliance #UKTaxChanges

Adapting to Overhauled R&D Tax Relief: Practical Insights The Autumn Statement and Finance Bill solidified significant shifts in R&D tax relief, effective from April 1, 2024. Merging existing schemes, the changes introduce complexities, notably in contracted-out R&D. Aligning with global standards, the restructuring aims to streamline the relief process. Businesses must navigate the alterations, understanding nuances in claiming relief, particularly in overseas expenditure and compliance requirements. How can companies efficiently adapt to these transformative changes in R&D tax regulations? Read more: https://bit.ly/43h6PCM #RDTaxRelief #FinanceBill #HMRC #BusinessCompliance #UKTaxChanges

What did you make of Budget 2025? Don't miss Paraic Burke's analysis of the missed opportunity to implement much-needed tax simplification in his article with @The Irish Times here. #Budget2025 #TaxPolicy

Since 1 April 2024, certain businesses can expect a 20% above-the-line taxable credit through the new merged R&D tax relief scheme, providing a net-cash benefit of 15% - 16.2%. Want to boost your innovation budget? Discover more about the implications of these changes in our latest insight: https://okt.to/Ww8ZGJ #Tax #ResearchAndDevelopment

The 2017 Tax Cuts and Jobs Act (TCJA) was the largest corporate tax reform in a generation, lowering the corporate tax rate from 35 percent to 21 percent, temporarily allowing full expensing for short-lived assets (referred to as bonus depreciation), and overhauling the international tax code. A new detailed and thorough study from economists associated with the National Bureau of Economic Research and the Treasury Department finds the reforms substantially raised U.S. capital investment and boosted economic growth. Simply put, as noted by economist Jason Furman, taxes actually do matter. Read more: https://hubs.ly/Q02nb7zD0

First introduced in 2004, the R&D tax credit is a financial incentive provided by the Irish government to encourage companies to invest in their R&D activities. In this article we explore: ✔ What is the R&D tax credit? ✔ What counts as a qualifying R&D activity? ✔ How can companies determine R&D activities meet qualifying criteria? ✔ What counts as a qualifying expenditure? ✔ Do building expenditures qualify for the R&D tax credit? ✔ How is the claim paid out? ✔ How to claim the R&D tax credit ✔ What documentation is required to meet the qualifying criteria? ✔ Preparing for an R&D audit ✔ How Grant Thornton can help Read full article: https://lnkd.in/eFBhfFhR #Tax #TaxCredit Peter Vale

As previously signposted by Rachel Reeves, there are no changes to R&D tax reliefs. Stability is a good thing - although there remains plenty to consider with the practical application of the merged scheme, which applies for accounting periods commencing from 1 April 2024. Within the Corporation Tax Roadmap, it was good to see that the government recognise that R&D tax incentives play a vital role to boost economic growth, with wider effects and help drive innovation in the UK. This is exactly why the OECD recommends countries adopt tax incentives to support innovation. It’s good to see a commitment to keeping R&D incentives "generous". Although many SME founders still feel a little hard done by, given the reduction in SME relief from 1 April 2023 onwards whilst the relief for large entities increased. However, the 20% merged scheme rate is joint highest in the G7. With the 'Road Map' it was also good to see a commitment to Patent Box. This can provide a 10% rate of corporation tax on profits derived from qualifying patents. Given a commitment to the 25% headline rate of Corporation Tax this remains a valuable relief and one which should be considered by all companies. It will be interesting to see whether the proposed expansion of advance clearances will provide more certainty, but that consultation will come in Spring 2025. I wonder how that will work in practice with the requirement to notify HMRC of an intention to claim within 6 months of a new claimants year end. The proposed R&D expert advisory panel and cracking down on agents with poor standards is long overdue. As ever, if you would like to discuss anything further, please do not hesitate to contact myself or any of my colleagues in the Innovation Taxes team at AAB. #2024budget #autumnbudget #taxincentives #randdtax #taxcredits #aab #patentbox