The Consultation – What is it?
The Chancellor of the Exchequer, Rishi Sunak, recently revealed the Spring Budget 2021, outlining the introduction and extension of many government support schemes for professionals and businesses to facilitate our smooth transitioning out of the pandemic. Among other things, he also announced that the government has an ambitious target to raise the total investment in research and development to 2.4% of the UK GDP by 2027. The R&D Tax Credit scheme is one of the government’s most successful and popular funding relief schemes, which is expected to play a vital role in stimulating this investment by reducing the cost of innovation. For this reason, the government plans to review R&D Tax reliefs and hold a consultation with various stakeholders to explore the nature of private-sector R&D investment in the UK and to understand the impact of R&D Tax reliefs on this investment. This is to ensure that R&D Tax Credits remain relevant, well-targeted and competitive.
How Can You Contribute?
The government has set clear guidelines and will welcome representations and feedback from all suitable parties and stakeholders. If you belong to any of the groups below, you will be able to provide your views on the specific questions raised by the government with regards to R&D Tax relief:
- Businesses that currently conduct R&D or plan to do so in the future
- Business groups and trade associations
- Accountants and accountancy firms
- Academic institutions
By gathering this data, the government expects to understand how R&D Tax reliefs are impacting businesses and the UK economy in general and ensure they are functioning well and serving their purpose to perfection. They will then attempt to deliver enhancements in a cost-efficient manner that maximises the additionality of the relief, keeping in mind the structure and operation of the scheme. This consultation is an ideal opportunity for businesses to have their say in how R&D Tax reliefs are possibly modified to best suit their needs.
How Can Datafox Help?
Datafox is an R&D Tax credit specialist that has been helping businesses receive maximum potential pay-outs for their innovation since the introduction of the scheme. Our R&D Tax credit specialists can provide the right guidance and support to businesses who currently conduct or intend to undertake pioneering research and development in the future. Since we have helped businesses from all eligible sectors in successfully claiming R&D Tax credits, we are in the perfect position to contribute as stakeholders in the government’s R&D Tax relief review and consultation and, help you understand the scheme and its technicalities before you participate.
To learn more, get in touch with our experts today!