The Spring budget 2021 has switched the spotlight on the technology and digital sectors, revealing several new measures expected to boost UK business growth. Along with the announcement of fast-track visa service for skilled tech workers and the provision of new IT funding to improve tax collection, another notable measure declared was about the proposal to bring data and cloud costs under the scope of R&D Tax relief. R&D Tax credits have played an instrumental role in supporting businesses that undertake research and development, especially in areas with a high scope of innovation, such as science, technology, and software. This inclusion of Cloud computing and data costs within the government’s R&D Tax relief scheme is expected to stimulate better research and development practices within various business sectors, many of which are increasingly becoming Cloud-based.
What This Means for Businesses?
If approved, this could provide an added incentive to businesses that regularly conduct R&D in digital and tech spheres and often have extensive costs associated with Cloud computing and data processing. It would enable the R&D Tax scheme to be more inclusive and reflective of modern R&D practices and encourage more businesses to pursue innovation in the technology sector, especially those within financial tech.
Datafox – The R&D Tax Credit Specialist for those within the Technology & Software Industry
Datafox is your go-to firm for anything related to R&D Tax credits. We have helped many businesses claim cashback for innovation in the tech and software industries. Hence, we understand just how crucial it would be for businesses if Cloud computing and data costs were included in the scope of R&D Tax credits. If and when this proposal is accepted and passed, Datafox experts will be able to guide and help your business make a successful claim to cover all the eligible costs. To learn more about our claims process and check your eligibility for applying for R&D Tax relief, get in touch with our team.