Although it seems like no time has passed since the last ‘Advance RD Assurance’ pilot was run by HMRC, The Gov.UK website will shortly publish details of the (second) ‘Advance assurance process’ for small companies wishing to claim RD for the first time. This is firmly aimed at SME’s with turnover below £2m claiming the reliefs for the first time.
This is a helpful step towards encouraging greater take up of these valuable tax reliefs, but stops a long way short of simplifying the complexity of the legislation or removing some of the remaining pitfalls in the regulations. Importantly, it does not preclude HMRC from seeking a penalty where an incorrect claim is made or an assurance is misinterpreted.
The Advance Assurance process is part of the 2015 consultation with HM Treasury to raise awareness of RD tax reliefs, we are continuing to work on a number of fronts including:
- Simplifying the tax credit (‘cash back’) reclaim processes
- Improving the situation and access for inbound RD companies resident outside of the UK
- Providing clearer legislation upon ‘subcontracting’ and ‘subsidised’ RD scenarios.
Please continue to watch this space!