In his Spring Budget today, Chancellor Jeremy Hunt depicted a narrative of economic resilience and recovery, headlining a £10bn national insurance cut in preparation for the impending general election. Asserting that Britain’s economy has ‘turned a corner,’ Hunt cited a substantial decrease in inflation from 11% to 4%, with further drops to below 2% projected in upcoming months. He also acknowledged a rise in business confidence, as reflected by the Lloyds Business Barometer’s three highest scores since February 2022. The budget presented promising prospects for UK tech companies and innovator ..read more

The landscape of R&D tax relief in the UK has seen notable changes in recent years, with significant reforms increasing complexity and effort for companies claiming, and more reforms are on the way. The progression of the Finance Bill 23-24 has been a key point of speculation and concern, particularly with the upcoming Spring Budget announcement on March 6th. At the core of the debate lies the government’s proposal to merge the R&D tax credit scheme alongside the existence of the R&D-intensive SME scheme, a move that has sparked a dialogue about the pace of change and the need for ..read more

Navigating the complexities of R&D tax credit claims in 2024 requires a strategic approach to minimise the risk of HMRC enquiries. Companies must prioritise accuracy, compliance, and the expertise of R&D advisors.  In this article, the third instalment in our series on enquiries, we explore key strategies to help you avoid HMRC enquiries and ensure a smooth R&D tax credit claims process. Choose an experienced and reputable advisor Selecting an advisor with both experience and a solid reputation is crucial. An advisor’s track record in handling R&D tax claims and enquiries ..read more

More than ever, navigating the complexities of R&D tax credits demands the guidance of experts. Specialist R&D advisors are essential, providing invaluable insights into interpreting regulations, steering companies toward compliance with HMRC guidelines, and mitigating the risk of enquiries. With the scheme undergoing frequent updates and increased compliance measures in recent years, the role of experienced R&D advisors has grown significantly.  This article is the second in a series dedicated to understanding enquiries. In this edition, we explore the pivotal role of R&D ..read more

In a time where AI and Machine Learning are unlocking new horizons in business, it is crucial for companies to grasp the importance of understanding if their innovations are eligible for R&D tax credits.  This article aims to shed light on the qualifying criteria established by HMRC, helping you assess if your innovation aligns with these requirements. Whether you’re exploring emerging technologies or using established ones, these insights will serve as a compass for evaluating your R&D projects. Innovation in the context of R&D Innovation in R&D, a key factor for R&D ..read more

As we step into 2024, it’s important to acknowledge the evolving landscape of R&D tax credit claims, which now demand more attention. HMRC has implemented stringent compliance measures, resulting in a notable surge in enquiries. This article marks the beginning of a series dedicated to understanding HMRC enquiries, specifically focusing on the current state of R&D tax credit enquiries. Exploring the recent upswing in HMRC enquiries, we delve into the measures taken by HMRC to address non-compliance within the scheme. The surge in HMRC enquiries The latest statistics on error and fraud ..read more

Last year, artificial intelligence (AI) garnered significant attention, leading to a surge in companies seeking R&D tax credits for their AI initiatives. However, the complex nature of AI, coupled with the intricate qualification criteria of the scheme, often leaves businesses uncertain about their projects’ eligibility for these credits. Established areas of AI, such as generative AI and Natural Language Processing (NLP), have formed the foundation for numerous R&D projects meeting the criteria for R&D tax credits. Nevertheless, some companies utilising established AI applications ..read more

In today’s Autumn Statement, Chancellor Jeremy Hunt unveiled 110 measures to boost economic growth ahead of next year’s general election. The statement emphasised the UK’s strong commitment to promoting innovation and research and development (R&D).  An important aspect of this commitment is the planned merger of the R&D tax relief schemes, which is expected to include a significant increase in financial incentives. By the fiscal year 2028-29, an additional £280 million per year is expected to be allocated to R&D relief, establishing the UK as a leading centre for cutting-edge ..read more

The landscape of Research and Development (R&D) tax relief in the UK is poised for a significant transformation. With the government’s consultation, launched in January 2023, and the published policy paper in July, the potential merger of the Small and Medium Enterprise (SME) and Research and Development Expenditure Credit (RDEC) scheme is important. If you engage in R&D activities, this reform could have significant implications. At EmpowerRD, we expect the Autumn Statement on the 22nd of November to shed much-needed light on the topic, but here is what we know so far. The proposal fo ..read more

In the ever-evolving landscape of R&D tax relief schemes, one particular change seems to have slipped under the radar of most R&D claim providers. The introduction of the Additional Information Form has led to over half of the R&D claims submitted in August being rejected due to the failure to complete this initial step.  Since our first article on this topic in April, R&D advisors have gradually come to terms with this new reality. In fact, the Google search volume for “Additional Information Form” has been steadily increasing, highlighting a delayed awareness of this new ..read more