R&D Tax Credits blogs
RDP Associates talks about many R&D topics in our R&D Tax Credit blogs. We talk about updates, changes and fraudulent cases. Stay up to date with anything within the R&D programme by subscribing to our mailing list.
Round up of the 2023 R&D Tax Credit Rules
So far in 2023, we have seen a number of changes to the R&D tax credit relief programme. We thought it might be useful to summarise and share the 2023 R&D Tax Credit Rules. The environment for claiming R&D tax credits has drastically changed as HMRC now...
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R&D Tax Credit Fraud and Error
Recently, the Chief Executive of HMRC was under pressure from the House of Commons Treasury Committee surrounding R&D Tax Credit fraud and error. He was asked to explain how R&D Tax Credit fraud and error had all of a sudden increased from £336 million to...
Do any of your clients qualify for the Patent Box?
Are your clients taking advantage of the Patent Box regime, if not: Do you have any clients who: Earn a taxable profit in each or most years andHave, or are filing, for a Patent that was, or is being created, by their in-house R&D efforts? If the answer is yes to...
Companies Unaware of HMRC’s R&D Claim Filing Requirements Causing Severe Delays
Commencing 8 August 2023, any company filing an R&D tax credit claim must access the government gateway and complete Additional R&D Information (AIF). This is an additional step to filing the R&D claim on the CT600. If the AIF is not completed, the R&D...
Non-compliance in the R&D Tax Credit programme
As most companies know, the level of non-compliance with respect to R&D tax credit claims has grown. Therefore many more compliance checks are being dished out within the R&D Tax Credit programme by HMRC. The latest analysis has shown us that the level of...
What to Expect When Your Company’s R&D Tax Credit Claim is in HMRC Query
Are you worried about an HMRC Query? Many companies that submit R&D tax credit claims are facing enquiries now due to an excess of claim submissions. Which are either ineligible or fraudulent in nature. Once a upon time, HMRC rarely queried claims and did not even...
New Information required to submit R&D Tax Credit Claims
As previously mentioned, HMRC is moving to obtain more information to submit R&D tax credit claims. This is to curb abuse and better track the eligibility of claims. So as of the 1st of August 2023, any company making an R&D claim will have to supply...
HMRC’s 5 Questions Regarding Penalties
As mentioned in prior insights into the R&D tax credit schemes, HMRC is significantly increasing their compliance checks. If HMRC denies all or part of an R&D tax credit claim they are also required to review whether they should impose penalties. HMRC’s 5...
How Do You Know Your R&D Tax Credit Claim is at Risk?
As a result of HMRC’s massive crackdown on R&D Tax Credit claims over the past year, companies are worried about the risk to their R&D tax credit claim. No one likes to receive an enquiry letter from HMRC and have their business under scrutiny. So, while there...
RDP’s Propriety Innovation Connection Program (“ICP”)
For over 35 years RDP has been continuously improving its methodology in preparing R&D tax credit claims. Nonetheless as technology and R&D tax relief rules change, so do our services and ongoing process. The Innovation Connection Program (“ICP”) is RDP’s...
R&D Tax Credit Compliance Check and Nudge Letters
For the next couple of years, we expect HMRC will be tough on companies filing R&D Tax Credit claims. Every year in the UK, about 90,000 companies are applying to the R&D tax relief programme. Of which SMEs take up 82,000 of these. Many companies are under the...
The 2023 Spring Budget announces more changes to the R&D Tax Credit Scheme
While HMRC continues its crack down on R&D tax credit claims by significantly increasing compliance checks, additional changes to the R&D Tax Relief Programme were announced in the 2023 Spring Budget.. So, let’s see what the key changes to the programme look...
RDP predicted the R&D Tax Credit changes would happen
As a result of the recent Autumn Statement, the tax relief rates for the SME programme has been cut drastically by roughly 40% on average. The reason is that the SME programme has grown exponentially over the last 8 years. But HMRC believes many companies are not...
R&D Tax Credits; is the SME Scheme in Jeopardy?
What is happening to the SME Scheme? Is the SME Scheme in Jeopardy? RDP Associates explains: The 2022 Autumn Statement announced a reduction in the effective R&D tax credit rate. Which is approximately from 25% to 16% for SMEs offsetting the R&D tax relief...
Changes on the Autumn Statement 2022 – SME R&D Tax Credit Rate is SLASHED
RDP Associates explains what's in the Autumn Statement 2022. The SME R&D tax credit rate has been significantly reduced effective for R&D expenditures incurred after 1 April 2023. The uplift has been decreased from 130% to 86% (a surprisingly specific number)...
Growing Concerns Regarding R&D Tax Credits
HMRC coming down hard on companies who push the boundaries When it comes to the R&D programme, there are many growing concerns regarding R&D Tax Credits. Within the UK, companies have had it easy when it comes to HMRC’s query rate of R&D Tax Credit claims...
Tackling Abuse and Improving Compliance
There are a number of steps HMRC is taking to ensure companies are filing proper R&D tax credit claims. This ranges from preventing fraudulent claims to companies pushing boundaries as to what constitutes eligible R&D work. Digital filing All claims to...
Update on Major Changes to the R&D Tax Credit Programme
There are significant changes coming about to the R&D tax credit programme in many areas. We have summarized these changes below as well as providing some observations. Administration, Processing and Compliance Compliance Of upmost concern to both HMRC and the UK...
R&D Tax Credits – Changes in HMRC Processing Times
HMRC Processing Times: To tackle the abuse with R&D Tax Credits, HMRC are delaying the processing times with submitting claims. This is now 40 days instead of 28 days. RDP Associates are here to help maximise your claim with ensuring nothing is left on the table....
How is the R&D process undertaken by RDP Associates and More Importantly, What is Your Time Involvement?
Most companies that we either are introduced to or approach RDP Associates (RDP) more often than not ask “What does your R&D claim process entail and how much time is required of my staff?” This is a reasonable question to ask since companies want their staff...
What Factors are likely to Impact Your R&D Claim Submission?
When RDP Associates speaks with companies that are looking to claim R&D tax credits and/or are unhappy with their present R&D Tax Credit service provider, many of them ask the same question “What could impact my R&D Claim”? More often than not, we advise...
R&D and Green, Green, Green!
Greener energy is any energy type that is generated from natural resources, such as wind, sunlight, or water. One of the key points with these energy resources are that they don’t harm the environment, through elements such as releasing greenhouse gases into the...
What is Your R&D Tax Incentive in Hiring an R&D Tax Credit Specialist?
When it comes to any company looking for an R&D tax incentive, how many times in a given week are they getting phone calls from multiple R&D tax credit specialists making mention “we are the best and can help you?” The feedback I continue to receive from...
HMRC Issues New Information and Statistics on R&D Tax Credits
As the R&D tax credit programme evolves and more companies submit claims, the HMRC figures has provided new information based on claim submissions received on or before 31 March 2020. Year on Year, the R&D Tax Credit (RDTC) claim submissions are increasing and...
Do R&D tax credits apply to you?
Start Ups and Young SMEs Most companies in the UK are claiming Research and Development Tax Credits. However, RDP Associates continues to come across many recently incorporated SMEs and start-ups. Who either may not know about the R&D Tax Credit programme and/or...
The Spring Budget Announces Major Reforms to the R&D Tax Credit Programme
While changes to the R&D tax relief programme in the Spring Budget may at first appear subtle or somewhat immaterial. RDP believes that the way HMRC will now focus on and administer R&D tax credit claims. Which will be significant and impact every company...
R&D Tax Credit Claims and How it Applies to The Oil & Gas Industry
Contrary to popular belief, the oil and gas industry offers many opportunities for R&D Tax Credits. Far too often, companies in this industry are unaware of their eligibility or the extent of their eligibility. R&D activities do not necessarily have to take...
Best Practices to Reduce HMRC R&D Tax Credit Claim Enquiries
R&D Tax Credit claims that have been filed with HMRC are generally processed or issued an enquiry notice within 28 days of filing the claim. R&D claims that are reviewed by HMRC includes the supporting documentation submitted. It is therefore important to...
Key Industries That Should Request a Complimentary Assessment on Claiming R&D Tax Credits
During recent years, awareness and uptake of the R&D Tax Relief Programme has grown. As more and more companies realise the importance of innovation and development. As a result, more companies are now claiming R&D tax credits annually. The programme is...
Failed R&D: You Can Claim R&D Tax Credits for Your Unsuccessful R&D Projects
Some R&D claimants believe that if your R&D project is unsuccessful, it is not eligible for R&D Tax Credits. Well, that is just not true. In fact, if your project fails, it proves you have had a technological uncertainty. Which means you had a technical...
R&D Tax Credits – Are You at Risk?
Are you at risk? Well when it comes to R&D tax credits under the SME scheme, the area of contracts and subsidies is very complicated, confusing and often misunderstood. HMRC knows this and has a current campaign to review SME R&D tax credit claims that are...
How to Promote the Culture of Research & Development (R&D) in Your Company
The process of R&D project, which includes technological advancements and improvements, involves finding new growth opportunities for your company. Today's business environment is constantly changing. These changes are a reality that companies need to implement...
HMRC Enquiry?
Ensure You Have These Questions Answered in Advance Are you worried about an HMRC enquiry? With the number of R&D claim submissions increasing year over year and even more so with the pandemic. HMRC has hired over 100 new staff to deal with the number of R&D...
The Case For Working With An R&D Specialist
While The Programme Continues To Evolve HMRC recently reported that approximately 15%-20% of R&D claim submissions were submitted without the support of an R&D Specialist. Working with a tax credit speciality firm, such as RDP Associates can save you time and...
Fact or Fiction: Claiming R&D and Government Funding?
Can a Company Claim both R&D Tax Credits and Government Funding? The short answer is yes. However, most claimants are under the impression that benefiting from both is not possible. There are two methods for claiming R&D tax credits. One under the SME scheme...
Key Points From The 2021 Budget Announcement
Last week, Chancellor Rishi Sunak unveiled the 2021 Budget Announcement in the House of Commons. From a big picture perspective, I think the best news in the budget, from a government assistance viewpoint, is that the government is committed to raising the total...
Coronavirus Government Support
How Will Coronavirus Government Support Affect Your R&D Tax Credit Claim? The government has provided the following support measures for companies affected by the COVID-19. Here are a few of the Schemes we have commented on: Coronavirus Job Retention Scheme...
Accountants: Proactive or Reactive
Are You Proactive or Reactive With Your Clients Regarding R&D Tax Credits? For all small and medium sized accounting firms, how confident are you that your clients and/or the R&D tax credit providers you are working with are claiming all eligible projects,...
Food & Beverage Companies
Here Are 3 Activities That Qualify For R&D Tax Relief If You Are Still Not Claiming Despite the Government’s efforts to encourage innovation through R&D tax credits, many food and beverage companies hesitate to claim. Those food and beverage taxpayers new to...
Brexit 2021, Another Lockdown
New Funding Support and What To Do Britain has now officially left the EU. Changes involving trade are just one of the many areas that businesses will have to adjust to, in addition to dealing with the current Pandemic. We mentioned late last year that a 3rd lockdown...
We Mentioned History Repeating Itself in 2019
HMRC Are Now Requiring a New R&D Tax Credit Submission Form WHAT’S NEW? As of April 1st, 2021, all companies submitting R&D tax credit claims be it Small and Medium Size companies (SME) whether it is for a reduction of tax liability, payable credit request...
December Year-End: Time is Running Out!
Companies That Have Not Claimed R&D Tax Credits for 2018 For those companies that are unaware of the R&D tax credit submission rules, a company may submit an R&D claim up to two years after an accounting period year-end. In a nutshell, whether you are a...
Fraudulent R&D Claim Submission
Claimants Jailed - Eyeopener for All Claimants: Is Your Current Provider Asking or Involving You in Determining Eligible R&D Projects? Recently, HMRC reported three men to the authorities that were involved in a fraudulent £29.5 million claim for R&D tax...
Post-Lockdown
What We Know, Where to Focus & How R&D Tax Credits Come Into Play Regardless of what is happening with the markets worldwide, Covid-19 throughout 2020 has impacted companies of all sizes in many industries. Some companies continue to furlough staff, others are...
Good News for SMEs
HMRC’s New Draft Legislation for R&D Tax Credits Under the UK R&D Tax Credit programme, R&D costs incurred for work done around the world can qualify for R&D tax relief. This is a very generous aspect of the programme but one that was subject to abuse....
Is HMRC Getting Tougher on R&D Tax Credit Claims?
Over the years HMRC have become tougher on R&D Tax Credit Claims. The R&D tax credit programme has now been in existence for about 20 years. Based on our experience in other countries like Canada, where the R&D tax credit program has been in existence for...
Companies Specialising In Numbers Are Good
However, They Do Not Have Technology Professionals For Maximising R&D Tax Relief Claiming R&D tax relief requires a set of specific scientific and technological skills rather than number crunching activities to maximise claims. Most companies have firms that...
3 Key Areas To Consider Before Choosing Your R&D Tax Credit Adviser
Choosing an R&D Provider the right way! 1. Assess your present adviser’s experience of the tax industry So, the starting point is to determine a tax adviser’s tax qualifications and experience. Are they chartered tax advisers? Does a “specialist” service provider...
Have You Been Advised
That Innovation is a Criterion for Claiming R&D Tax Relief? If So, Hire a New Provider Most companies are now aware that Research and Development (R&D) tax credits are a government sponsored programme designed to reward UK companies for investing in...
PAYE and NIC Cap returns for R&D. Will Your R&D Tax Credits Be Affected?
When the Research and Development tax credit programme was first made available to taxpayers, companies were unable to claim a payable cash credit if they had not paid any PAYE and NIC. In other words, if a company did not have any salaried employees and were...
Size Matters: The RDEC Scheme and The Real SME Test
The R&D tax relief scheme has now been in existence since 2000. The programme was initially designed to incentivise Small and Medium Enterprises (SME’s). Then in 2002 was expanded to large enterprises. As of April 1st, 2016, the programme replaced the “large...
R&D Claims: An Infographic on HMRC R&D Tax Credits
What factors are at play when you file for your R&D claims with HMRC? Learn how to effectively leverage your cash flow with R&D tax credits. Our senior consultants at RDP are here to help you maximise your claims effectively. They will: Ensure all R&D tax...
The 6 P’s of Eligibility for R&D Tax Credits in UK
In the year 2000, the Government introduced Research and Development (R&D) tax credits. Since then the programme has gained popularity as the number of claimants have increased year over year. The primary reason for its popularity is that more companies realise...
Current R&D Innovation Grant Funding Opportunities in the UK
With Brexit looming large, there is renewed impetus for the Government to increase business support in the form of R&D innovation grants in UK to ensure industries maintain their competitiveness in the global economy. In April 2017, a new Industrial Strategy...
Can I Make an R&D Claim Without Employee Time Tracking?
In a perfect world, all R&D staff, or those working on an R&D project, would keep time reports that detail all their R&D activities. However, we are often asked, “how would I allocate our employees’ time if we did not keep time reports?” The overriding...
How Does UK Compare When It Comes to R&D Tax Credits?
As Brexit continues to leave a lasting mark of instability, businesses are caught wondering how things will shake out going forward. The UK heavily relies on trade with the rest of Europe. At the heart of trade lies innovation and introduction of new products and...
R&D Areas You’ve Almost Certainly Overlooked
There are nearly 50,000 businesses in the UK that claim R&D tax credits annually. But there are still many businesses that don’t know about the programme, or know about it, but do not think they qualify for it. Here are some tips on preparing an R&D tax credit...
Perspectives on R&D Tax Claims
You don’t know what you don’t know With the continuous increase in the number of companies that do R&D tax claims, there are still many businesses that don’t effectively leverage their tax credit.An example of this is a multi-site restaurant in the UK that...
BREXIT’s Impact on Innovate UK and R&D Tax Credits
With many uncertainties surrounding the effects of Brexit on the UK economy and its trade with the rest of the world, many are wondering what the government’s fiscal policies will be in the post-Brexit landscape. This includes its impact on R&D tax relief and...
Tips for Not Leaving Money on the Table for Your R&D Claim
When it comes to capturing costs against a qualifying R&D project, there are many misconceptions about the types of costs that can be included. After all, if a cost is necessary in carrying out the R&D it must surely qualify for the relief, right?...
The R&D Tax Credit Scheme: A Victim of Its Own Success?
RDP recently attended an HMRC Agent briefing, which gave some useful insights into the current state of play on the R&D tax credit programme and on certain areas of concern.Briefly, taxpayers are now more aware of this government-sponsored programme as there has...
R&D Tax Relief – Rethinking Remuneration Strategy for Directors
R&D tax relief is expanding rapidly with the number of claims made by companies increasing 20% year on year. In recent years, it has been very common for director shareholders to remunerate themselves with a low salary to maintain their National Insurance record...
What Should I Do If HMRC Decides to Keep My R&D Credits?
The following piece was originally published in BQLive Magazine Whether it's the first time or the fifth time your company has submitted an R&D tax credit claim, rather than receiving your cheque from HMRC, you might get a wordy letter.It goes something like this:...
How Do I Know if I can Claim R&D Tax Credits?
The following piece was originally published in UMi Over the last several years in the UK, the research and development (R&D) tax credit programme has gained popularity and the number of claim submissions continues to increase year on year. The programme is...
What To Do If You Receive This Response from HMRC?
So, you’ve filed a claim for R&D Tax Relief and patiently waited for HMRC to issue your tax credit refunds. Then you receive a response from HMRC with the following: “The BIS Guidelines refer to an advance in science or technology as an advance in overall...
Why Partnering with an R&D Tax Credit Provider Helps Your Bottom line
Over thirty years ago I left EY with the goal of starting up my own accounting firm. By far the best way I found new clients was by offering R&D tax credit services. I found assisting clients with R&D tax credit claims to be a value-added service. As a...
UK Fintechs: Funding Opportunities for a Leading Tech Sector
Too Early To Call It would be too early to claim that London’s banking giants have become a shadow of their former selves simply because FinTechs in UK are taking this well-entrenched industry by a disruptive storm. FinTechs have been leveraging powerful multi-mode...
How to Leverage UK Small Business Grants
Navigating the landscape for R&D grant funding can seem like a daunting task. Companies seeking small business grants for support to grow and innovate can potentially access millions of pounds in government subsidies, but must go through layers of programming to...
Claiming Contracted and Funded R&D Work for Tax Credits
Whether you are new to R&D tax credits or have been claiming regularly, the R&D Tax Relief programme is not always straightforward to figure out and the rules can be confusing to taxpayers. We frequently receive questions from companies, both those new to the...
Why It’s a Challenge to Choose the Right R&D Tax Credit Provider
When it comes to selecting an R&D tax credit provider, the task is usually assigned to a company’s CFO, or in smaller organizations, the owner. The selection process is typically based on receiving recommendations from a trusted advisor, business associate or,...
How to Prepare for R&D Tax Credit Relief
Research and Development (R&D) tax credit relief by the Government of the United Kingdom is becoming increasingly popular among UK businesses as more companies explore its benefits. However, there are many businesses that, due to a lack of expertise in R&D tax...
R&D Tax Credit Best Practices: Why You Should Not File for R&D Tax Credits…
…If There is No Expert Advice Involved For those businesses that have been trading since 2000 and fortunate enough to take advantage of RDEC accounting treatment for the last 17 years, their R&D activities have resulted in greater investment in the innovation...
New HMRC Rules for R&D Software Based Claims
Her Majesty Revenue and Customs (HMRC) is responsible for administering and processing R&D tax credit claims through the corporation tax system. R&D tax credits have increased significantly over the last several years, and today UK businesses can reduce or...