Samantha Vanags, tax partner for KPMG Enterprise, comments on the Chancellor’s announcement that the government will improve access to R&D tax credits by introducing voluntary advanced assurances lasting three years for smaller businesses making a first claim from autumn 2015:
“As more and more of our country’s income comes from the high tech sector, it’s no wonder that Government introduces something new in almost every Budget to encourage companies to innovate.
“This time, we’ve seen a new opportunity for smaller companies to get their claims for R&D tax credits pre-approved for three years, backed by a 2-year publicity strategy to increase awareness of the reliefs available.
“This really is excellent news. R&D tax relief is playing an important part in incentivising innovation and fuelling the UK’s growth. We’ve always said that the single biggest change that would make it even more effective is to increase its awareness amongst smaller businesses, and to make it easier for them to claim. These measures do exactly that.
“If more companies claim, then the overall impact of the scheme will be more significant, and the bigger rewards we will reap from those companies that are making the most difference to our economy.
“In short, R&D Tax credits are working, so let’s keep going!”
Katy Broomhead, KPMG Corporate Communications
KPMG Press office: +44 (0) 207 694 8773
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.