Earlier in 2022 the Government announced three, more positive reforms that would benefit UK based innovation and the R&D tax credit initiative, which will come into effect in April 2023.
1. Data & Cloud Computing Costs
Qualifying R&D project costs will include dataset licence payments, staffing data costs and cloud computing service costs.
2. Refocus on Innovation Based in the UK and Not Overseas
Third-party subcontractors and Externally provided workers (EPW) must carry out work in the UK and be on a UK payroll.
3. Tackling Abuse and Improving Compliance
The government is introducing a new cross-cutting team to tackle abuse and requiring more detailed claims to be submitted digitally.