research and development Archives - WRLO Accountants

Government urged to implement reforms to R&D tax system

WRLO Accountants — Fri, 03 May 2024 08:52:39 +0000

The government is being urged to implement reforms to the Research and Development (R&D) tax relief system in order to avoid hurting small companies by the Suffolk Chamber of Commerce. A report released by the Chamber found that recent changes by HMRC and a ‘wild west’ regulatory system in regard to who can act as R&D tax advisers are ‘undermining confidence and take-up‘. The Chamber collected a number of case studies and original survey research, which showed that 46% of small companies are deterred from making future claims based on their latest experience. Chair of the Chamber’s R&D Tax Reliefs Task and Finish Group, Steve Elsom, said: ‘Our original research into local businesses’ experiences shows that the lack of knowledgeable experts at the HMRC, plus the imposition of an overly strict compliance regime is causing many legitimate companies’ most recent claims to be delayed and/or refused, with others fearful that previously successful claims from previous years might now be challenged. ‘Every right-thinking person applauds the crackdown in fraudulent claims, but HMRC appears to be going to extremes in its definition of the term. Our research showed that companies which might have made a very minor administrative error in their application […]

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New HMRC R&D tax relief guidance ‘could be clearer’, says ICAEW

WRLO Accountants — Sat, 06 Apr 2024 08:54:30 +0000

New guidance from HMRC on Research and Development (R&D) tax relief ‘could be clearer’, according to the Institute of Chartered Accountants in England and Wales (ICAEW). HMRC’s draft guidance covers the restriction applying for contractor payments and payments for externally provided workers (EPWs) where the R&D activity takes place overseas; and the new rules for contracted-out R&D. The ICAEW’s Tax Faculty believes that additional clarity would be helpful on a few of the new points. It also said that the guidance‘does not fully address the implications of an arrangement between the customer and the contractor that is governed by multiple contracts’. The Institute has called for the guidance to explain how to determine if the contractor took R&D into consideration at the time of the contract when multiple contract dates exist. The ICAEW also called for clarity on the requirement that the carrying-on of R&D needs to be the primary objective of the customer in engaging the contractor if the customer is to claim the associated R&D tax relief. Internet link: ICAEW website

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December 2019 news

WRLO Accountants — Wed, 04 Dec 2019 21:17:44 +0000

In this month’s Enews we consider tax free gifts for employees, updated advisory fuel rates for company cars and tips on avoiding Self Assessment scams. We also report on the updated Check Employment Status for Tax tool and temporary pensions arrangements for some NHS staff. With guidance on cryptoassets, the latest HMRC Employer Bulletin and R&D statistics there is lots to update you on. Making sure gifts to employees are tax-free Advisory fuel rates for company cars HMRC offers tips on avoiding Self Assessment tax scams Check employment status for tax tool update Temporary pensions tax arrangement for NHS staff HMRC issues guidance on cryptoassets Latest guidance for employers Research and Development spend Making sure gifts to employees are tax-free Some employers may wish to give a small gift to their employees. As long as the employer meets the relevant conditions, no tax charge will arise on the employee. A tax exemption is available which should help employers ensure that the benefits provided are exempt and do not result in a reportable employee benefit in kind. In order for the benefit to be exempt it must satisfy the following conditions: the cost of providing the benefit does not exceed £50 per employee […]

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