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    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

    European Regional Development Fund Northern Powerhouse
    Partners Department for Business Innovation and Skills Finance Birmingham