It is applicable for both the SME and RDEC schemes from 1 April 2023 for all accounting periods beginning on or after 1 April 2023 for both the SME and RDEC schemes.
Main points
Overseas Expenditure
To be qualifying expenditure, the expenditure on payments that are made to subcontractors are required to be in the UK; or qualifying overseas expenditure and applies to the activities of the subcontractor.
For externally provided workers to qualify the expenditure must be subject to PAYE and NIC's unless it is overseas expenditure.
Qualifying Overseas expenditure is expenditure on R&D undertaken outside the UK where 3 factors must apply.
Data licences and cloud computing services
Data licences, cloud computing services systems and software platforms costs can be qualifying expenditure when employed in activities which directly contribute to the resolution of scientific or technological uncertainty. If not used 100% for R & D a reasonable apportionment will be accepted.
The general exclusions to the above are if the business has a contractual right to sell data onward and if the business has a contractual right to publish, share or otherwise communicate data with a third party.
Claim notification
Companies will need to submit a Claim Notification Form for their R & D claim to be valid for accounting periods starting on and after 1 April 2023 if:
- They are first time R & D claimants, or
- R&D claimants who have not made a R & D claim in any of the previous 3 calendar years.
More details will follow on the pre notification after 1st April 2023 when the online systems go live.
The time limit for making a claim is from the first day of the accounting period to which the claim relates to 6 months after the end of the period of account that includes the relevant accounting period.
If the company makes its R & D claim before the deadline, then it does not have to submit a claim Notification form online. i.e., the corporation return, and computation is submitted with an R & D claim in it before the 6-month deadline.
Mathematics
From 1 April 2023 the BEIS guidelines have been updated to make clear that activities relating to pure mathematics now meet the definition and are eligible for R & D tax reliefs.
Additional information
For accounting periods starting on and after 1 April 2023 for an R & D tax relief claim to be valid a company must submit an Additional Information form which can be accessed from GOV.UK from April 2023.
The form should be submitted before, or at the same time as the claim, i.e., when a tax return and computation containing the claim is submitted.
Verification of the information required for the additional information can be discuss with us on your successful claim for R&D.
Shared from UHY
