- R&D tax credits are a core part of the government’s support for innovation. The tax credits support innovative businesses as they invest, driving growth and productivity across the UK.
- Spring Budget 2020 announced that the government would consult on what costs companies can include in R&D tax credit claims, and whether these need to be updated to ensure the credits remain well-targeted and reflect modern R&D processes.
- The government is interested in hearing from stakeholders as it considers whether to include R&D costs for data and for “cloud computing”.
- Expanding the scope of qualifying costs would have an exchequer impact, therefore the government would also be interested to hear about current eligible costs that could be considered routine work and should not be receiving relief.