If you have a turnover of less than £2 million and not yet made an R&D tax relief claim, HMRC are about to make things a whole lot easier.
Earlier this week David Gauke, Financial Secretary to the Treasury, announced the R&D tax relief plan to make it easier for small businesses to claim. The full report can be read online here.
We know there are so many small companies that aren’t claiming their cash for innovation, so we're all pleased to see the government’s commitment to sustaining and strengthening the R&D tax relief scheme. This new plan to raise awareness and understanding among SMEs is undoubtedly a positive step in the right direction.
The consultation was well publicised and wide-reaching, and this new part of the scheme called Advanced Assurance (AA) applies to companies with less than 50 employees and sub-£2m turnover, who have never made a claim before.
There seems to be strong backing for Advance Assurance from just about everyone, but of course even though the scheme is due to launch next month no one seems to know quite how this will work.
We will continue to liaise with R&D tax inspectors, and ensure we gain AA quickly for our smaller clients when the programme has been fully defined. Successful applicants will receive assurance that HMRC will allow their first three years of R&D claims without further enquiry.