These rate changes will be legislated in the Autumn Finance Bill 2022.
The rationale behind these reforms was, as set out by the Government, the need to improve the competitiveness of the RDEC scheme to increase overall R&D investment, and move towards a simplified, single RDEC-like scheme for all. Ahead of the next budget, the Government says it will work with industries to understand what further support is needed for R&D intensive SMEs.
Do the R&D Tax credits changes affect your business' claim?
It is paramount that entrepreneurs and businesses review their current tax standings and future plans, in light of these reforms. For many SMEs, R&D tax credits form a substantial part of financial and investment plans that forecast several years ahead.
These changes come with just four months' notice: not considering the impact of the new policy could therefore have significant repercussions.
As part of the wider GS Verde Group, GS Verde Tax provides expert advice to companies and business owners, helping them to make practical and informed decisions. Our tailored support and guidance ensure compliance while performing appropriate R&D tax credit calculations to help maximise the reliefs available.