IoD responds to R&D tax reliefs consultation
The Institute of Directors has today responded to HM Treasury’s R&D Tax Reliefs Review: Consultation on a Single Scheme.
The consultation seeks views on proposals on how a single scheme, based on the Research and Development Expenditure Credit model, could be designed and implemented. There are currently two separate ways in which the tax system supports R&D expenditure: the Research and Development Expenditure Credit (RDEC) and the small and medium enterprises (SME) R&D relief. In its response, the IoD highlighted the reasons to consider merging the two schemes into a single ‘above-the-line’ taxable credit system based on the current RDEC scheme.
Kitty Ussher, Chief Economist at the Institute of Directors, said:
“There are good reasons to consider merging the two schemes into a single ‘above-the-line’ taxable credit system based on the current RDEC scheme, notably the greater impact it would have on decision-making, the impetus to involve qualified accountants in advising on the claim as opposed to bespoke R&D tax credit agents, and simplification benefits through combining the two schemes.”
You can read the IoD’s response in full here.