On 18 July 2023, the Government published draft legislation for the Finance Bill 2024. Included within the draft legislation was a proposal for a single merged Research & Development (R&D) regime. The draft legislation is for technical consultation and may not be enacted, however, the new rules could be effective from as early as 1 April 2024
Changes to the R&D tax relief schemes were announced in the Autumn Statement 2022 with some of the changes having been discussed since the Autumn Budget 2021. The Spring Budget 2023 brought yet even more changes.
As previously announced in Autumn 2022, the following changes were confirmed which will apply in respect of expenditure from 1 April 2023
There were few surprises in the Budget, especially given that, contrary to tradition, most of the announcements were extensively trailed in the media in the days leading up to the speech.
The key provisions were as follows
Jeremy Hunt has set out some key changes to the R&D tax credit scheme which come into effect on 1 April 2023. These changes have been brought in to improve the competitiveness of the RDEC scheme and are also a step towards a proposed more simplified, single RDEC-like scheme for all claims. They also target fraudulent and abusive claims which have been increasing in recent years
On Thursday 17 November, the Chancellor presented the Autumn Statement. Some highlights are as follows:
Corporation tax: As previously announced corporation tax will increase from April 2023 to 25% from the current 19%.
R&D tax reliefs: Changes will be made to the rates of relief available for expenditure on or after 1 April 2023
Correct at the time of publishing (11th October 2022).
Draft legislation has been published which will affect companies that claim R&D tax relief under either the Research and Development Expenditure Credit (RDEC) or the small or medium enterprises (SME) R&D schemes.
The changes are intended to apply for accounting periods beginning on or after 1 April 2023
Kwasi Kwarteng revealed a package of tax cuts as part of the Government's growth plan. A plan he claimed would tackle inflation and high energy costs through growth in the economy.
Read about the main points arising from Friday's statement
The UK is overwhelmingly a nation of small businesses, with SMEs accounting for over 99% of the business population. Many of these businesses are owner managed companies, and may overlook two tax efficient ways of providing increased financial security for themselves and their families
Predicted growth in UK economy this year scaled back from 6% to 3.8%. Inflation to average 7.4% in 2022. Additional 1.25% national insurance charge unchanged. Reduction in fuel duty of 5p per litre (worth 6p including VAT) for 12 months
It feels as though most of us know somebody who knows of "this bloke" (and they do seem to be mostly young males) who has made a small fortune trading in Cryptocurency.
HMRC have sent a "nudge" letter reminding people they have identified as crypto owners that gains on crypto assets are subject to capital
In the run up to today's Budget, several announcements were trailed by press release, for example the increase in the National Minimum Wage from £8.91 to £9.50 for over 22s and the potential lifting of the public sector pay freeze.
There was the usual speculation about changes to pension tax relief and capital gains tax;
What is it? A new tax, set initially at 1.25%, set to raise £12bn per annum to help fund the NHS and social care.
When does it come into force? The levy will begin for the 2022/23 tax year starting on 6 April 2022
Who has to pay? For 2022/23 the levy will be payable
30 day return requirement for property disposals
We are still seeing a number of cases where people making property disposals have been unaware of the requirement to file a special tax return and pay the tax due within 30 days of completion. If this deadline is missed, HMRC will charge penalties and interest
In summary The Budget contained few tax surprises, but the proposals are a serious attempt to ward off recession and mitigate the effects of coronavirus through increased spending.
Proposals include full Statutory Sick Pay reimbursement for small employers, a relaxation of the benefits system to help the self-employed, and a government loan guarantee scheme to
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