UK R&D tax credit scheme consultation - have your say!
Building on a previous consultation relating to the R&D tax credit scheme last year, the UK Government has now released a second, wider-reaching, consultation on whether the tax relief available under the scheme is still fit for purpose in its current form. The consultation is open for comments until 02 June 2021.
As background, the R&D tax credit scheme allows qualifying entities an element of tax relief on expenditures relating to research and development (R&D). The two main claim streams for obtaining relief under this scheme include:
- Small and medium sized enterprises (SME) research and development relief; and
- Research and development expenditure credit (RDEC).
Here comes the money…making sure to monetise your patenting and research efforts
A more detailed explanation of these two claim streams (SME R&D relief and RDEC) can be found in our article of February 2020.Read more
As part of this second consultation, the UK Government is being somewhat more open ended with its questions. In this respect, a wider range of topics are being now consulted on, such as in relation to:
- the types of R&D expenditure which are claimable under the scheme, and whether these could be changed in any way;
- whether the R&D tax credit scheme might be simplified so as consolidate the above two SME/RDEC claim streams into one;
- the amount of information which should be submitted by entities seeking to make a claim under the scheme; and
- whether the scheme might be revised to better incentivise R&D relating to specific social values, for example those relating to green technology.
Noting its wide reaching nature, the issuance of this consultation now provides a fantastic opportunity for those already making use of the R&D tax credit scheme to give their opinion on how the scheme might be improved to work better for them. Equally, for those entities that are not yet able to claim under the scheme, the consultation now provides a welcome opportunity for these entities to have their say on how the scheme might be modified to better cover their research efforts.