Understanding the Current Tax Relief Position on UK Pension Contributions
The tax relief system on UK pension contributions is designed to encourage individuals and businesses owners to save into pensions ...
5 December 2023
Through sampling and assessment of hundreds of R&D claims, HMRC have discovered around half of all claims have an element of non-compliance. Because of this, new guidelines for compliance (GfC) were issued in October 2023.
The GfC explains what HMRC expects from applicants, and contains new examples of how guidance from the Department of Science, Innovation and Technology (DSIT) can be used to determine successful applicants and reduce non-compliance.
There’s a lot of reading to do. DSIT guidance is approximately 4,300 words and the GfC adds a whopping 10,500 words. We’ll summarise the key points here to help your application for R&D tax credits.
It’s clear from the comprehensive guidance in the GfC that you need to do some serious reading up before you make a claim for R&D tax relief. HMRC say the responsibility of your claim will rest with the applicant, not your advisor. Blaming poor advice won’t help you to avoid a penalty if your claim doesn’t pass muster.
You’ll also need to consider whether you have what HMRC consider to be a competent professional in the area you’re wishing to claim an advance in. Without one, your claim won’t get far.
Ultimately, the GfC will most likely significantly reduce the overall number of R&D claims and ensure the remaining claims will be more compliant.
If you’re not sure you’re eligible for an R&D claim, check out our advice. Or to speak to professional R&D experts, get in touch with us by email or phone 0116 490 0279 today.
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