HMRC has reported a big 21% drop in analysis and growth (R&D) tax credit score claims for the 2022/23 tax yr, with the variety of claims falling to 65,690 from 83,240 within the earlier yr.
Nikhil Oza, Associate at UHY Hacker Younger, attributes the decline to HMRC’s more and more stringent declare processing, which is discouraging small companies from making use of for tax aid they’re entitled to.
Oza criticised the complicated limitations now in place, together with a time-consuming extra data kind and the necessity for first-time claimants to inform HMRC prematurely, which have led to many companies lacking out on helpful tax aid. He warned that HMRC’s overly cautious strategy to hunting down fraudulent claims is hampering reliable progress companies and stifling innovation.
Oza emphasised the significance of making certain that tax aid schemes for R&D are processed effectively to encourage UK companies to proceed innovating and driving financial progress. He cautioned towards extreme crimson tape, which dangers additional hindering the UK’s already lagging R&D spend in comparison with worldwide opponents.
