Thomas Chacko and Quinlan Windle discuss the options for tax breaks in relation to spending on R&D:
- outline of scheme and changes made in 2024
- what R&D means
- can you claim when R&D is contracted out
- practical points about how to deal with enquiries bearing in mind recent case law
1:25 outline of the scheme pre the Finance Act 2024 – basic deduction and 2 further possible schemes (relief for small and medium enterprises + R&D credit).
2:54 effect of Finance Act 2024
3:23 what is R&D? A common question as well as major issue in many of the cases.
8:03 the effect of HMRC now taking very robust stance on R&D tax credit claims and requiring cases to pass a very high threshold. Issues with highly technical areas eg software. Tax payers must be able to explain highly technical projects to HMRC/tribunal in a way that enables them to understand why the work merits the tax credit.
18:40 restrictions on qualifying expenditure in recent case law and following the Finance Act 2024.
37:09 practical problems in enquiries and litigation. Also the use of ADR.
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Case citations and legislation
Legislation and guidelines
Corporation Tax Act 2009
Finance Act 2024
BEIS Guidelines – latest update March 2023 (originally the DTI Guidelines)
HMRC Guidance – CIRD84250
Case law
Hadee Engineering Co Ltd v Revenue & Customs [2020] UKFTT 497 (TC)
BE Studios v Smith & Williamson Ltd [2005] EWHC 1506
Flame Tree Publishing v HMRC [2024] UKFTT 349 (TC)
Get Onbord v HMRC [2024] UKFTT 617 (TCC)
Quinn (London) Ltd v HMRC [2021] UKFTT 437 (TC)
Collins Construction Ltd (TC09332) – 21 October 2024
Stage One Creative Services [2024] UKFTT 1059 (TC)
