R&D tax reliefs to be capped by HMRC

The Government regards investment in research and development to be crucial to the UK’s productivity and future. The R&D tax relief scheme has been designed to encourage businesses to invest in innovation.

Alleged abuse of R&D tax reliefs

Because the tax credits can generate substantial cash payments from HMRC, they may have become a target for abuse. HMRC have concerns over fraudulent claims by businesses.

Capping R&D relief for SMEs

A cap will be introduced from 1 April 2020 to limit a company’s claims to payable tax credits to be below three times the company’s total PAYE and NIC liabilities for that year

Please contact us if you have any queries over the Research and Development Tax relief.