Originally announced as a minor change in Phillip Hammond’s October 2018 Budget an alteration to the rules regarding Research and Development Tax Relief could have major implications for some businesses.
At present current Research and Development Tax Relief regime allows loss making companies to ‘surrender’ losses arising from research and development activity for a tax credit. This tax credit has become particularly important for start up or early stage companies – where cash flow is often a key concern.
There are tens of thousands of pounds being lost in tax relief by eligible companies every year. This reflects the common misconception that Research and Development (R&D) is confined to manufacturing, tech giants or research laboratories. In reality, businesses are often undertaking #R&D in their day-to-day activity, driving innovation and moving the industry forward without realising. Get in touch to find out more.