Here are some highlights to help our clients and partners understand how this legislation will affect them and the measures Bonham & Brook would recommend to any affected companies.
How to Prepare
This is going to be enormously important for our software and IT Clients, ultimately there is no easy fix. It is vital that your finance department is aware of the implications of any reduction and analyses its impact on cash flow. Once this process has been carried out, the business can make decisions as to whether it would be advantageous to utilise UK Based R&D partners instead of off-shoring.
How to prepare
Begin to document anything that falls into the above categories, whilst only periods following March 2023 will be eligible it’s best to get processes embedded early.
HMRC must be notified six months before the end of the period to which the claim pertains. Their intention is to make a claim via a digital service.
No pre-notification is required if the company has claimed during one of the previous three periods.
There was always a suggestion of pre-notification but we don’t know whether it will have the intended effect.
How to prepare?
For those of you already claiming with us, this shouldn’t be an issue as HMRC is already aware that you will likely be claiming going forward. For those considering claiming, going forward it’ll be important that they realise prior years will be ineligible after 2023.
How to prepare?
It’s important to leave sufficient time to submit your claim, i.e. no waiting until the last day of your financial period and stressing your accountant out on the last day! Previously such a scenario could be alleviated by a manual submission, but this will no longer be the case. Ample time should be allowed to minimize the risk of missing your claim due to poor time management.