MIA Member RDA have provided the following updated information regarding R&D tax:
Current R&D Tax Relief Landscape
Merger of RDEC and SME scheme
The RDEC and SME schemes will be merged from April 1st, 2024.
Claiming R&D for processes
R&D claims can be made on processes and individual projects that contribute to the
overall vehicular performance.
Rate Changes
Claims for R&D completed before April 1st, 2024, and within the last two years, are eligible
for higher rates of returns.
New costs eligible for claims
New costs relating to pure maths and cloud computing can now be claimed
Patent Box for Competitive Advantage
Reduced Corporation Tax Rate for UK Companies
The Patent Box program offers a 10% corporation tax rate on profits from patented inventions,
enabling UK companies to retain more profits for reinvestment in R&D and growth. By reducing the
tax burden, it supports innovation and helps UK businesses compete globally.
New Eligibility in R&D - Pure Maths
Vehicle Dynamics Mathematical equations.
Fine-tune handling, suspension, and overall stability.
Data and Simulations
AI use in real-time data analytics. Analyse race data from tests and simulations to improve car
design.
Optimisation strategy
Performance tuning for optimisation, fire safety, and other strategic decisions.
Materials
Developing new materials using advanced mathematical concepts. Improving design and
performance of materials.
Process Development and R&D Eligibility
R&D in Processes Beyond Engineering
R&D extends beyond traditional engineering, encompassing the development and improvement of
processes in safety, operations, and management.
Fire Safety Procedures: A Successful R&D Claim
For example, a motorsport team claimed R&D tax relief for developing new fire safety procedures,
involving research, equipment testing, and implementation of enhanced protocols.
For more information please contact Jim Ashley on 01245 801 622 or email jim-a@rda.co.uk.
Other MIA Members offering R&D tax consultancy services:
For more information please contact the MIA Team on +44 (0)2476 692 600 or email info@the-mia.com.
