More details have been released on proposed changes to some of the tax reliefs available for firms that invest in research and development, and new products. Under the proposals, the R&D tax credit system is to be simplified. One change would see the credits extended so that they cover the costs of more contract workers. Also on the agenda is a pilot that will allow small companies and start-ups to find out what projects will qualify for the credits at an early stage in their development in order to make planning easier.
Another innovation is the Patent Box. As from April 2013, the scheme will mean a corporation tax charge of just 10 per cent on profits that stem from patents. It is hoped that the Patent Box will provide an incentive for companies in the UK to take existing patents to the market and to develop new innovative patented products.
The Patent Box consultation document can be found at: http://www.hm-treasury.gov.uk/consult_patent_box_stage2.htm
The R&D tax credits consultation document can be found at: http://www.hm-treasury.gov.uk/consult_r_d_tax_credits.htm
Applying for R&D tax breaks can be a complicated affair. We are on hand to guide you through the entire process and to help you turn your business ideas into successful products.