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Growing SMEs – beware an unintended trap

R&D tax relief is a very valuable tax relief for innovative UK companies. Many companies are successfully claiming relief each year – latest government statistics show that 25,300 companies made R&D tax relief claims in 2015/16 – although many more are clearly still missing out. Of those 25,300 companies that claimed relief in 2015/16, over [...]

By |September 25th, 2017|HMRC, R&D|

When does a payment have to be made for R&D tax relief purposes?

In the recent case of Gas Recovery And Recycle Limited -and- The Commissioners For Her Majesty's Revenue & Customs [2016] UKFTT 746 (TC), the First Tier Tribunal had to consider when was the deadline for payment of R&D expenditure in order for it to be included in a valid R&D relief claim. Requirement for “payment” [...]

By |December 13th, 2016|R&D|

What does “Brexit” mean for R&D relief and Patent Box?

I’ve been asked a few times since last Thursday’s referendum what the implications might be for the UK’s R&D and Patent Box regimes. In terms of negative implications, the answer is that there really shouldn’t be any. Both of these reliefs are UK domestic reliefs contained within UK tax legislation and they do not rely [...]

By |June 29th, 2016|Patent Box, R&D|

IP Developments and issues [Article]

My article on recent developments in the area of IP taxation has just been published in CIOT's Business Tax Voice (p16). The article covers recent changes and developments in the R&D tax relief regimes, including HMRC's move towards standardised claim templates. It also looks at the changes being made to the UK's Patent Box regime. [...]

By |June 10th, 2016|Uncategorized|

Why does GDS find it so difficult to get things right on Gov.UK?

GDS - the Government Digital Service, which is responsible for keeping Gov.UK updated - has recently posted updates to HMRC's CIRD Manual. All very boring, except for the fact that GDS seems to be struggling to actually get the update right. On the evening of 16 May an update was made to the pages covering [...]

By |May 18th, 2016|Government, HMRC, R&D|

HMRC (Finally) Updates its State Aid R&D Guidance

Almost two years after first circulating a draft of the proposed new guidance on State Aid issues for SME R&D claims, HMRC has finally published that guidance. The new version of CIRD81670 was published yesterday and includes commentary on De Minimis Aid as well as links to EU guidance on State Aid matters. Having links [...]

By |May 17th, 2016|HMRC, R&D|

Enhancements to the R&D Advance Assurance application process – HMRC moves closer to being digitally advanced

I blogged back in November 2015 about how far HMRC still had to go to become truly digital. One of my concerns was the application process for the R&D Advance Assurance scheme - the form was to be completed online, then printed and posted to HMRC! Well, good news, HMRC has taken a small step [...]

By |March 21st, 2016|HMRC, R&D|

Budget changes to R&D Relief

There are 3 changes coming to R&D relief following this year’s Budget announcements. On the face of it they all sound fairly innocuous but a lack of detail at present leaves me slightly concerned about the third change. The changes are: Vaccine Research Relief (VRR) is to be abolished for expenditure incurred on or after [...]

By |March 16th, 2016|Budget, R&D|

This, right here, is the problem with the R&D relief regime.

I’ve just had an article on R&D tax relief pointed out to me. It appears on the website* of a national newspaper under the by line of one of their journalists, although it would appear to rely heavily on information and quotations provided by one firm of advisers. After reading the article I’m left feeling [...]

By |March 9th, 2016|R&D|

Tax transparency, taxpayer confidentiality and is it now time to make HMRC a Ministerial department?

We have a longstanding principle of taxpayer confidentiality in the UK. My tax affairs are confidential between HMRC and me. The essential effect of this principle is that my financial affairs are my business and (subject to my duty to disclose income to HMRC for the purposes of paying tax on it) mine alone. HMRC [...]

By |February 25th, 2016|Anti Avoidance, Government, HMRC|