Government publishes further details from its review into R&D tax reliefs

Government publishes further details from its review into R&D tax reliefs

The Chancellor announced in his Autumn Budget that R&D tax reliefs would be reformed to support modern research methods. As part of Tax Administration and Maintenance Day, the Government has now set out further plans to continue building a modern, simple and effective tax system – which helps taxpayers get their tax right the first time – as well as the next steps for the review.

Reforms, which come into effect from April 2023, include:

  • support for modern research methods by expanding qualifying expenditure to include data and cloud costs
  • more effective capture of the spillover benefits of R&D funded by the reliefs through refocusing support towards innovation in the UK
  • targeting abuse and improving compliance

Rebecca Heap, Senior Research & Development Manager at Beavis Morgan R&D, comments: “Whilst there will be a considerable number of claimants with overseas expenditure disadvantaged, this announcement is welcome news for taxpayers, and a step in the right direction towards simplifying and improving the UK tax system and bringing about these much-needed reforms.

“R&D Tax Relief is essential for businesses in supporting their innovations and projects, however, the tax environment is challenging, and it can be very difficult for businesses to keep on top of the government funding which is available and relevant to them. By refocussing support towards innovation, modernising the system by expanding qualifying expenditure to include data and cloud costs, and improving access to R&D tax relief, more businesses will benefit from this valuable incentive creating a more internationally competitive tax system.

“We also welcome the steps taken to enhance compliance and reduce the abuse by unregulated advisors.  Our priority is to ensure seamless and secure claims for our clients, and we are pleased that our process already exceeds the new recommendations for R&D tax submissions.  As a regulated accounting firm, our clients have assurance of a highly professional service, taking them through every step of the process.”

View the policy paper here:

Beavis Morgan’s specialist R&D Tax Relief team looks to align opportunities and obtain additional funding for our clients, making them aware of the various schemes available and enabling government support to be more accessible. For further information about the R&D Tax Relief Scheme and any changes that may impact your business, please get in touch with Rebecca Heap via email or visit our website: