Greater R&D relief access mooted for small companies

HMRC are asking small companies about easing the process for claiming research and development reliefs.

A consultation paper aimed at firms and their advisers covers:

• Awareness: are key decision makers in small companies aware of the relief? For example, would it be helpful to receive information through social media, trade bodies or other business networks?
• Design: are the rules appropriate for small companies? The process could be revised to give an option of setting aside the current definition of R&D and instead use accounting rules to identify qualifying expenditure. Should there be a general framework that gives more certainty, specifying what R&D costs qualify for relief?
• Understanding: should the guidance be provided in new formats, such as interactive flowcharts or applications. Should it be organised according to how the legislation for the credits is arranged, or follow events in a company’s lifecycle?
• Administration: HMRC will introduce a formal process of advance assurance for small companies claiming research and development relief for the first time. There will be a single initial contact point for this purpose. Companies will supply brief information in a standard template, usually followed by a telephone discussion. It is not proposed that advance assurances will be compulsory, or that any fee will be charged.

Responses must be sent by email no later than 27 February.

Issue: 4485 / Categories: News , Companies