A number of changes to R&D reliefs are due with effect from April 2023, while some others will be rolled out soon after.

This tax relief for SMEs is very generous. It gives a tax deduction for an amount in excess of the actual expenditure and, in many cases, a payment for surrendered losses. So, it’s perhaps not surprising that it has become a magnet for unscrupulous advisors wishing to profit from it.


Claim notifications

Any company that has not made either an R&D claim or a claim notification in any of the previous three accounting periods will be required to make a claim notification within the six months following the end of the relevant accounting period or their claim will be invalid.

Find more information about Claim notifications here.


Provision of additional information

Claims will be invalid unless the company provides the required additional information. This is expected to include information with regard to the nature of the qualifying activities and a breakdown of the eligible expenditure making up the claim. I understand this information must be provided using an online form.

It is likely that the form will also require the company to provide the name of the senior officer in the company taking responsibility for the claim, as well as the name of any adviser assisting or advising the company in respect of the claim.


Changes to eligible expenditure

The intention is that Corporation Tax Act  2009 s 1125 will be amended to also allow expenditure on data and cloud computing costs to be included in R&D claims. You can read more about the changes to eligible expenditure here.


Rate changes

In his Autumn Statement, the Chancellor announced that the rates were being changed for both the SME relief and for RDEC. The changes will apply to expenditure incurred on or after 1st April 2023.

The rate of super deduction for the SME relief is to be reduced from 130% to 86%, while the rate that losses can be surrendered for the payable credit is being reduced from 14.5% to 10%.

At the same time, the RDEC rate will rise from 13% to 20%.


For more information on these changes, head to taxadvisermagazine.com or if you are looking for more help or services regarding your R&D Tax Relief, get in touch with us.


Information taken from Tax Advisor December 2022: Refocusing R&D: A feeling of relief? By David O’Keeffe

Get the latest industry updates, tax tips and Whyfield news straight to your inbox.

Subscribe to our monthly newsletter.

  • This field is for validation purposes and should be left unchanged.
You can unsubscribe at any time.