NAA Event Review: Webinar – The Impact of R&D Tax Relief Claims Following Changes due to Legislation
This past year has seen unforeseen changes that have impacted R&D tax claims – recently with CBILs and the furlough scheme as a direct result of COVID-19 and, in addition, the upcoming introduction of IR35 and off-payroll working…
What these changes have in common is the impact they will have on a business making R&D claims, and subsequently going forward, their cashflow.
BDO hosted a webinar last month which highlighted the key items to be aware of which can impact the R&D Tax Benefit and in turn your company’s cash flow:
- SME vs RDEC Status – ensuring your business is under the correct R&D regime is not as straightforward as it seems e.g. impact of change in ownership, groups, individual owners and grant funding on R&D project costs could all impact whether a project is claimed under the SME or RDEC regime.
- Furlough – Salaries of employees who have been furloughed will normally not qualify for R&D as they are not performing R&D when they are furloughed as they were not permitted to work during this time.
- Upcoming IR35 – be aware of the changes coming up and how these could impact your R&D claims in relation to any qualifying costs on Externally Provided Workers.
- CBILs – if these are used to fund any specific R&D projects, as opposed to just funding general cash flow, these specific projects will not qualify under the SME scheme, they may still qualify under the RDEC scheme.
- Are you optimising your claim? BDO can provide a second opinion discussion with you at no cost to ascertain if an uplift of Tax Benefit is potentially possible and what R&D costs may have been missed.
If you missed this webinar, you can view the recording here
