Autumn Statement 2016: Focus on R&D
23 November 2016
Chancellor Philip Hammond delivered his first Autumn Statement announcement today (23 November 2016).
Kevin Nicholson, head of tax at PwC, comments on R&D:
"This was a fairly business friendly statement. The commitment to innovation and productivity plays to the UK's strengths - we're a big producer of intellectual property. Anything that can help harness and nurture knowledge, innovation and research is a good thing. Other positive signals include doubling export finance capacity, and the commitment to cutting the corporation tax rate as planned."While the Government has said its industrial strategy isn't about picking winners, the focus on R&D suggests the Government does have its favourites."Overall the Statement is a positive start but there's a long way to go to better understand the Government's approach to tax policy in a Britain managing Brexit".
So, what are R&D Tax credits?
R&D tax credits are a key part of the government's strategy to support innovation in the UK. SMEs can claim cash repayments of up to 33.35% of costs relating to an activity or initiative that is considered eligible; boosting cash flow and enabling investment in growth. Eligibility is defined more broadly than you might imagine, and it can include costs incurred in the course of substantially improving existing technologies and processes. For example, if you're developing a bespoke trading platform or CRM system, or if you're re-designing your manufacturing process, you may be eligible! Where your activity or initiative is classed as eligible, your claim will include a wide range of associated costs, including the payroll cost of those involved.
Boost your cashflow by claiming R&D Tax Credits: Online & super fast, Nifty R&D is a simpler way for small businesses to claim this tax incentive. It's the convenience of technology powered by PwC expertise. Find out more by visiting the Nifty R&D website or contact Rachel Moore on 01223 55227.
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