New Survey Finds Failure to Notify HMRC a Significant Risk for Businesses Claiming R&D Tax Relief, According to 78% of Accountants
London, UK – In a recent survey conducted by innovation incentive experts ForrestBrown, it was found that a staggering 78% of accountants have encountered clients unable to make an R&D tax relief claim due to failure to notify HMRC under the new requirements for claim notification. This highlights a lack of awareness among businesses about the rule change process, potentially costing them valuable tax relief for genuine R&D activities.
Increased Pressure and Time Constraints
The survey also revealed that accountants are facing increased pressure and time constraints due to recent changes to the R&D tax relief scheme. 80% of accountants reported that claims now take longer to prepare compared to a year ago, with 35% noting a significant increase in time. Additionally, 77% of accountants have had to invest in additional training to stay up to date with the changing regulations, highlighting the mounting time and financial pressures faced by firms.
Adapting to Technical Hurdles and Changing Guidelines
Accountants also face technical hurdles in the new R&D tax relief scheme, with 55% struggling to write project descriptions for the Additional Information Form and 64% finding it challenging to establish who has the right to claim under the new guidelines on contracted out R&D. Furthermore, 57% of accountants cite HMRC enquiries as a major pain point.
Kelly Oakley, Associate Director at ForrestBrown, commented on the survey results:
“The changes made to the R&D tax relief incentive are understandably causing challenges for both accountants and their clients. The complexity of putting together a robust claim that meets HMRC requirements has increased, leading some accountants to re-evaluate how they provide R&D tax advice. This may involve partnering with a specialist to supplement their own expertise.”
About ForrestBrown
ForrestBrown is the UK’s leading R&D tax specialist and innovation incentives consultancy. Their team of over 100 experts, including qualified chartered tax advisers, accountants, lawyers, and former HMRC inspector, offer unmatched technical expertise and are dedicated to helping innovative businesses grow. ForrestBrown was awarded ‘Best Independent Consultancy Firm’ at the 2023 Taxation Awards.
For further information, please contact:
Priyanka Dutt
Account Director
Rostrum
ForrestBrown@rostrum.agency
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Notes to editors:
For further information, please contact:
Julian Sims
Senior Account Executive
Rostrum
10 Stukeley Street
London
WC2B 5LQ
m: 07775892493
e: j.sims..@..rostrum.agency
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