The government is being urged to implement reforms to the Research and Development (R&D) tax relief system in order to avoid hurting small companies by the Suffolk Chamber of Commerce.

A report released by the Chamber found that recent changes by HMRC and a ‘wild west’ regulatory system in regard to who can act as R&D tax advisers are ‘undermining confidence and take-up‘.

The Chamber collected a number of case studies and original survey research, which showed that 46% of small companies are deterred from making future claims based on their latest experience.

Chair of the Chamber’s R&D Tax Reliefs Task and Finish Group, Steve Elsom, said:

‘Our original research into local businesses’ experiences shows that the lack of knowledgeable experts at the HMRC, plus the imposition of an overly strict compliance regime is causing many legitimate companies’ most recent claims to be delayed and/or refused, with others fearful that previously successful claims from previous years might now be challenged.

‘Every right-thinking person applauds the crackdown in fraudulent claims, but HMRC appears to be going to extremes in its definition of the term. Our research showed that companies which might have made a very minor administrative error in their application are counted as fraudulent.’

Internet link: Suffolk Chamber of Commerce website

The government is being urged to implement reforms to the Research and Development (R&D) tax relief system in order to avoid hurting small companies by the Suffolk Chamber of Commerce.

A report released by the Chamber found that recent changes by HMRC and a ‘wild west’ regulatory system in regard to who can act as R&D tax advisers are ‘undermining confidence and take-up‘.

The Chamber collected a number of case studies and original survey research, which showed that 46% of small companies are deterred from making future claims based on their latest experience.

Chair of the Chamber’s R&D Tax Reliefs Task and Finish Group, Steve Elsom, said:

‘Our original research into local businesses’ experiences shows that the lack of knowledgeable experts at the HMRC, plus the imposition of an overly strict compliance regime is causing many legitimate companies’ most recent claims to be delayed and/or refused, with others fearful that previously successful claims from previous years might now be challenged.

‘Every right-thinking person applauds the crackdown in fraudulent claims, but HMRC appears to be going to extremes in its definition of the term. Our research showed that companies which might have made a very minor administrative error in their application are counted as fraudulent.’

Internet link: Suffolk Chamber of Commerce website

The government is being urged to implement reforms to the Research and Development (R&D) tax relief system in order to avoid hurting small companies by the Suffolk Chamber of Commerce.

A report released by the Chamber found that recent changes by HMRC and a ‘wild west’ regulatory system in regard to who can act as R&D tax advisers are ‘undermining confidence and take-up‘.

The Chamber collected a number of case studies and original survey research, which showed that 46% of small companies are deterred from making future claims based on their latest experience.

Chair of the Chamber’s R&D Tax Reliefs Task and Finish Group, Steve Elsom, said:

‘Our original research into local businesses’ experiences shows that the lack of knowledgeable experts at the HMRC, plus the imposition of an overly strict compliance regime is causing many legitimate companies’ most recent claims to be delayed and/or refused, with others fearful that previously successful claims from previous years might now be challenged.

‘Every right-thinking person applauds the crackdown in fraudulent claims, but HMRC appears to be going to extremes in its definition of the term. Our research showed that companies which might have made a very minor administrative error in their application are counted as fraudulent.’

Internet link: Suffolk Chamber of Commerce website

The government is being urged to implement reforms to the Research and Development (R&D) tax relief system in order to avoid hurting small companies by the Suffolk Chamber of Commerce.

A report released by the Chamber found that recent changes by HMRC and a ‘wild west’ regulatory system in regard to who can act as R&D tax advisers are ‘undermining confidence and take-up‘.

The Chamber collected a number of case studies and original survey research, which showed that 46% of small companies are deterred from making future claims based on their latest experience.

Chair of the Chamber’s R&D Tax Reliefs Task and Finish Group, Steve Elsom, said:

‘Our original research into local businesses’ experiences shows that the lack of knowledgeable experts at the HMRC, plus the imposition of an overly strict compliance regime is causing many legitimate companies’ most recent claims to be delayed and/or refused, with others fearful that previously successful claims from previous years might now be challenged.

‘Every right-thinking person applauds the crackdown in fraudulent claims, but HMRC appears to be going to extremes in its definition of the term. Our research showed that companies which might have made a very minor administrative error in their application are counted as fraudulent.’

Internet link: Suffolk Chamber of Commerce website

Around 7.4 million people in the UK struggled to pay a bill or a credit repayment in January, according to the Financial Conduct Authority (FCA).

The figure is lower than last year but is still significantly higher than before the cost-of-living crisis began.

According to the FCA, in January 2023, after the Russian invasion of Ukraine and the subsequent start of the cost-of-living crisis, the number of people in financial difficulty almost doubled to 10.9 million.

The FCA survey also suggested 5.5 million people had missed a bill or credit payment in the six months to January 2024.

In addition, one in nine people also had no disposable income, the FCA said.

Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said:

‘Our research shows many people are still struggling with their bills, though it is encouraging to see some benefiting from the help that’s available.

‘If you’re worried about keeping up with payments, reach out to your lender straight away. They have a range of support options and will work with you to agree the best one for you. You can also find free debt advice through MoneyHelper.’

Internet link: FCA website