Shropshire companies looking to claim research and development (R&D) tax relief could soon benefit from a simplified system.
The Government has announced it is looking into combining the two existing schemes – the small and medium enterprises (SME) R&D relief, and the research and development expenditure credit (RDEC).
DY Director, Stacey Lea said the review was welcome news for local businesses.
“The Treasury has launched an R&D tax relief review to look into merging the two current R&D schemes and this will run until 13 March.
“The two-month project will focus on different ways to design and implement a single simplified scheme that will completely replace the existing process.”
Stacey said in his Autumn Statement the Chancellor, Jeremy Hunt, pledged to work with businesses to understand how to provide further support for small and medium enterprises claiming R&D relief.
“According to the Treasury, a scheme based on the research and development expenditure credit system would give smaller companies clearer information on the levels of support available to them.”
The Government is now inviting businesses to have their say on how a simplified scheme should look, but all comments must be received before the 13 March deadline.
“As well as businesses, they particularly want to hear from representative bodies and accountants with experience of using existing RD schemes,” said Stacey.
Financial Secretary to the Treasury, Victoria Atkins MP, said: “The Government would like a system for supporting R&D which drives innovation and growth.
“It needs to be simple to use and administer and underpinned by the effective application of taxpayers’ money.”
Stacey urged local Shropshire businesses to share their opinions which can be submitted at RDTaxReliefs@hmtreasury.gov.uk .
“R&D plays an important role in driving economic growth and it can bring great benefits, so it’s crucial that businesses are maximising any available tax reliefs that are available on such vital business practices,” said Stacey.
“If you’re unsure of any potential reliefs that you could be eligible for, it’s a good idea to seek out professional advice or you could be missing out.”
DY Director, Stacey Lea