As the second budget of 2017 approaches on 22 November, the Chancellor has been approached to consider, maintain and boost the funding for the Scientific and Technological community.
During the Budget on 8 March 2017, Mr. Hammond stated, amongst other supporting statements:
• The government’s commitment to Research and Development Tax Relief, stating plans are to be put into action reducing the administration burden of claiming R&D Tax Relief under the RDEC scheme.
• The R&D process has been reviewed and is considered to be competitive.
• Action will be taken to improve awareness of R&D tax relief under the SME regime.
This week Norman Lamb MP, The Chair of the Commons Science and Technology Committee, has written to the Chancellor after completion of Committee’s evidence session on ‘The Science Budget and Industrial Strategy’.
What was the aim of the letter?
In brief, the letter calls for the Chancellor to commit to the continuation of support to the Scientific and Technological community in the next budget and beyond. The rationale for this request was determined as a result of the Committee’s inquiry, which takes into account reviews by individuals representing UKRI, Universities UK, the Royal Academy, the CBI and Tech UK, among others.
The correspondence also calls for commitment to the sector as Brexit unfolds to ensure funding such as ‘Horizon 2020’ and Framework ‘Programme 9’, or offer an alternative incentive.
The enquiry and subsequent correspondence addressed, amongst other areas:
• Commitment to the UK’s full participation in the Horizon-2020.
• Acknowledgement that within the next 10 years a further £2.4bn a year uplift will be needed to deliver Government’s 2.4% of GDP target for overall R&D expenditure
• Consider how the R&D Tax Credit system might be better targeted.
Contact R&D Tax Solutions today
Speaking to our team of specialists at R&D Tax Solutions will enable you to determine whether your business is eligible for research and development tax credits. Find out whether your business matches the necessary criteria for the projects you have conducted. Contact us today on 0161 298 1010 to discuss your R&D claim.