Jeff Drennan, Managing Partner at Amplifi Solutions, comments of the changes in R&D support and the R&D tax credit scheme as outlined in the Chancellor’s 2020 budget:
“Today, Chancellor Rishi Sunak has announced that the Government’s investment in R&D will increase to £22 billion per year by 2024-25 – up from the Conservative party’s manifesto pledge to increase investment to £18 billion. This represents the largest increase in R&D spend ever announced from a new budget.”
“Expenditure credit (RDEC) for large companies on the R&D tax credit scheme will also increase from 12% to 13% – effective from 01 April 2020. This is much welcomed news for large companies who are embarking on increased R&D expenditure in the coming months and will no doubt encourage additional financial investment.”
“The Chancellor also pledged in the 2020 budget to examine how the R&D benefit is distributed across the United Kingdom to help level up every region.”
“The Government will also consult on widening the definition of R&D to include cloud computing and data fall. This commitment is most welcome, as it ensures that the legislation becomes more relevant to current technologies and that companies are able to make full use of the relief for even more types of innovation.”
“There was great news for distilleries as the Chancellor also announced £10 million of new R&D funding to help distilleries ‘go green’. Looking towards defence, the government will also invest an additional £100 million in Defence R&D to develop capabilities in response to threats facing the UK.”
Amplifi Solutions, whose team includes Management and Chartered Accountants, provides an end-to-end specialist technical service that takes companies throughout the entire R&D process – from an initial and free exploratory meeting, creation of the R&D claim, and submission to HMRC – all to you receiving the R&D tax benefit.
R&D tax credits can be awarded to any company proving they are undertaking steps in research or development – even when those projects don’t succeed. The tax breaks were introduced in 2000 by the Government to encourage and reward R&D within limited companies or PLCs.
For more information on R&D tax credits contact our team