There was a lot to take in from yesterday’s budget and the devil is always in the detail….in the form of the Budget Report.
Anyway, the R&D headlines distilled for you are:
- As hoped, the rate of RDEC will increase from 12% to 13% from 1 April 2020 – good to see the UK competing globally when it comes to R&D regimes.
- The government will consult on whether expenditure on data and cloud computing should qualify for R&D tax credits (no timescales given yet)
- The proposed anti-avoidance to protect the SME regime from abuse will be delayed until 1 April 2021 to ensure it works effectively without penalising eligible businesses.
- Changes within ‘workers services’ legislation would potentially have caused a problem for R&D ‘Externally Provided Worker’ claims but this will now not be a concern.
The takeaway – there is ongoing and increasing support for companies undertaking R&D in the UK – one small piece of certainty in rather turbulent times!
As always, do get in touch if you have any questions.
