Driving Progress: Engage in the Technical Consultation for R&D Contracting

Blog Post Outline: Views sought on new R&D contracting out rules and overseas restrictions Introduction Overview of HMRC’s technical consultation Contracted-out R&D Activity Explanation of contracted-out R&D activity Importance of understanding the new rules Overseas Rule Changes Elimination of the term ‘qualifying overseas expenditure’ Implications of the overseas rule changes Benefits of R&D Tax Reliefs […]

HMRC updates

Taxpayers argued Sensations poppadoms were zero-rated due to gram flour, but HMRC saw them as standard-rated, like potato crisps. The tribunal agreed with HMRC, disregarding the product description. Surveys on customer perception were irrelevant. Appeal dismissed. The judge sided with HMRC, considering the product similar to potato crisps in ingredients, packaging, and marketing despite being […]

Tax relief claimed on VCT investment grows

In 2021-22, investment in Venture Capital Trusts (VCTs) eligible for income tax relief surged by 61%, reaching £1,040m. The number of investors claiming tax relief also rose by 32% to 25,800. Most investors typically contribute under £50,000, with an average investment of £40,000. However, HMRC deferred the publication of 2022-23 figures to May 2024, citing […]

Update on Probate

From 17 January 2024, those applying for probate in England and Wales no longer need to complete an IHT421 probate summary to submit with their IHT400. Instead, the letter which HMRC sends confirming receipt and processing of the form IHT400 will provide a unique code and the details of the estate values which will be […]

Paternity Leave

From 8 March 2024, HMRC is making changes to the way paternity leave and pay can be claimed and taken, to make it more flexible. The changes will: allow leave to be taken in non-consecutive blocks allow leave and pay to be taken at any point in the first year after the birth or adoption; […]

Does Class1 Employee NIC cut really means anything?

In 2024, despite lower National Insurance rates, freezing income tax and allowances will likely cause a net tax increase, says the Institute for Fiscal Studies. Those earning around £35,000 may gain £130 from the National Insurance cut but lose due to frozen thresholds. Higher earners benefit more, while those under £29,000 may lose out.

Energy saving materials

A new policy paper on the additional buildings and technologies that will benefit from VAT relief for the installation of energy-saving materials has been published. From 1 February 2024, relief will be extended to installations of energy-saving materials in buildings used solely for relevant charitable purposes. It will also cover water-source heat pumps, electrical batteries […]

The conditions for SEIS are crystal clear and such an error raise concerns on the accountant level of competency on SEIS shares scheme.

In 2020, ten companies, all with a common director who was a chartered accountant (AD), had their claims for seed enterprise investment scheme (SEIS) relief denied by HMRC. The refusal was based on three main grounds for each company: failure to meet the risk-to-capital condition, the trading condition, and engagement in disqualifying arrangements. In the […]

HMRC have confirmed they have not met their standards on R&D

The Chartered Institute of Taxation (CIOT) criticizes HMRC’s handling of research and development (R&D) tax relief compliance. Despite HMRC’s acknowledgment of shortcomings and efforts to improve, the CIOT states that valid claims are still being rejected. The CIOT urges HMRC to decrease its compliance approach until caseworkers are adequately trained in R&D matters to avoid […]