Changes to R&D Tax Relief coming 1st April 2023

By RfM Transform

22 Mar 2023

Untitled design (18).png.png

From 1st April 2023, the R&D tax credit scheme will see some changes as HMRC reforms its current system. While it’s important to be aware of these changes, there’s no need to panic. With guidance and support from the team at RfM Transform, your business can still make the most of R&D tax relief.

If you are an existing RfM Transform client, you will already be well prepared but here are some of the changes that could still affect you:

  1. Companies will be required to submit an additional information form at the same time as the R&D claim is submitted. This is in addition to the report that HMRC still expects. It will need to provide some explanation of the R&D carried out and why it is considered R&D. It will also need to include breakdowns of categories such as Consumables, Staff costs, etc. 
We anticipate that this information will be taken from the existing reports that RfM Transform prepares for its clients, so there will be no additional responsibility for Transform clients.
  2. Some good news: Data licenses and cloud computing can now be included as part of your qualifying expenditure. Care does need to be taken about whether data is shared for the purpose of R&D or as a part of a product. Furthermore, Pure Mathematics can now also be defined as R&D – potentially offering further upside.
  3. The government is cracking down on spending outside of the UK though so subcontractors and externally provided workers only qualify if it is UK-related work, or can be classed as qualifying overseas expenditure.
  4. Changes to rates: HMRC is reducing the size of the benefit – although this will be mitigated somewhat by increases to Corporation Tax.
     Up to the 31st March 2023After April 1st 2023
    Profit Making Company130% Uplift on costs
     = 24.7% net benefit
    85% Uplift on costs
    =21.5% net benefit
    Loss Making CompanyCosts + 130% Uplift
    = 230 x 14.5% repayable credit
    = 33.4% Subsidy
    Costs + 86% Uplift
    = 186 x14.5% repayable credit
    = 18.6% Subsidy
  5. An additional piece of admin has been added to the process; each claim will now have to be signed off by a named senior officer of the company and include the name of the agent submitting the claim. The team at RfM Transform will guide you through this when it’s time to sign off on your Technical Report.
  6. Less likely to affect our existing RfM Transform clients, is the need to pre-notify R&D. This only applies to new claimants making a claim for the very first time or to those who have not made a claim in the last three accounting periods.

If you have not yet made an R&D claim, and think you may qualify, get in touch now so we can start the process for you as soon as possible. RfM Transform has helped its clients to save over £2.5 million via the R&D Tax Relief scheme, including cleaning chemical companies, manufacturers, cheesemakers, brewers, specialist technology companies and many more.

Get in touch with Tony Backhouse on 07969 900 864 to learn more.

Latest news

1

University of Central Lancashire celebrates hat-trick of wins at Educate North Awards University of Central Lancashire winners at Educate North Award Winners 2025

University of Central Lancashire celebrates hat-trick of wins at Educate North Awards

04 Apr 2025

2

The Villa’s sister venue shuts its doors The Villa Levens and The VillaWrea Green (Image credit: The Villa Levens and The Villa Wrea Green)

The Villa’s sister venue shuts its doors

04 Apr 2025

3

PM urged not to retaliate over tariffs Manufacturing

PM urged not to retaliate over tariffs

03 Apr 2025

4

CMAC Group appoints Matthew Ratcliffe as chief operating officer Matthew Ratcliffe CMAC

CMAC Group appoints Matthew Ratcliffe as chief operating officer

03 Apr 2025

5

For sale signs at The Villa Villa Wrea Green has been brought to market (Image credit: The Villa Wrea Green)

For sale signs at The Villa

02 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Lancashire Business Expo 2025
https---cdn.evbuc.com-images-880395853-4862066883-1-original.20241022-091152-2.jpeg.jpg
LBV Hub Exhibitions
04 Apr 2025 - 04 Apr 2025

Lancashire Business Expo 2025

Sir Tom Finney Sports Centre, Preston, PR1 2HE

09:00 - 15:00

The Business Network Central & East Lancashire
LBV Hub Networking
24 Apr 2025 - 24 Apr 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

People Power: Exclusive Event Series
Stay ahead in 2025.jpg.jpg
LBV Hub Seminars
29 Apr 2025 - 29 Apr 2025

People Power: Exclusive Event Series

People's History Museum, Manchester, M3 3ER

17:00 - 21:00

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Innovating business solutions through PhD Partnerships
30478 Skills Bootcamp open day setting.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Innovating business solutions through PhD Partnerships

University of Central Lancashire, Preston , PR1 2HE

14:30 - 15:30

Celebrating 50 years of KTP
UCLanAerialCampus.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Celebrating 50 years of KTP

University of Central Lancashire , Preston, PR1 2HE

16:00 - 18:00

Research and Knowledge Exchange Showcase
13421_research_knowledge_exchange_2025_600x300.jpg.jpg
LBV Hub Awards
07 May 2025 - 08 May 2025

Research and Knowledge Exchange Showcase

University of Central Lancashire , Preston, PR1 2HE

09:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin