The Taxation (Research and Development Tax Credits) Bill has passed its third reading and will be passed into law after receiving Royal Assent. The R&D tax incentive will apply to eligible R&D activities conducted by a business during the 2019/2020 tax year.
For most businesses this means expenditure on eligible R&D undertaken from 1 April 2019 will qualify for the R&D tax incentive, and they should record their R&D expenditure now to ensure their records are ready to file at the end of the tax year.
The following video provides a useful overview about the scheme.
For year one of the R&D tax incentive there is limited refundability available for smaller businesses with cashflow challenges. There is work underway on a more developed refundability process to support R&D businesses with limited tax liability and the Government is committed to having a decision in place for year two of the scheme.
If you’d like to know more about the forthcoming R&D Tax Credits, contact us at the resources guys