2 years on: How is the R&D Tax Incentive measuring up?

A recent study has provided insight into how businesses view the R&D Tax Incentive, 2 years after its inception.

The Incentive offers an increased benefit to claimants compared to the previous scheme (the R&D Tax Concession), with

The study found that the biggest concerns held by companies in relation to claiming the Incentive centred around the new definitions of core/supporting activities and remaining within the parameters of required project definitions.

Interestingly, though unsurprisingly, almost half of those surveyed felt that, due to the ongoing iterations made to the legislation, the Incentive was a benefit that could easily be scrapped. With innovative businesses uncertain by their very nature, it is disappointing that a scheme meant to bolster innovation may instead inhibit it, with 81% of companies concerned about lodging an application.

Encouragingly, over 70% of those surveyed engage a third party to complete their R&D Tax Incentive claim on their behalf. Although this indicates that indeed the Incentive is more compliance-heavy than its Concession predecessor, it also shows that businesses continue to recognise the huge benefits the scheme offers. Furthermore, this figure shows that claiming the Incentive is not simply a financial exercise but requires technical insight and knowledge in how best to go about structuring and documenting a claim and the projects it encompasses.

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Dec 1, 2013.

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