Changes to claims and contracted relief set to impact UK manufacturing
Robin Taylor, Senior Sector Specialist at MTA Associate Member, ForrestBrown offers critical advice
The UK government has made the most significant changes to tax incentives available for research and development (R&D) since their introduction in 2000, in a move set to impact manufacturing.
Announced on the 1 April 2024, the newly formed R&D tax relief scheme is the result of a merger between the SME R&D scheme and existing R&D Expenditure Credit (RDEC). While these changes will impact all industries seeking tax relief, manufacturing is set to be particularly affected, as a sector that invests heavily in R&D.
According to HMRC’s 2023 ‘R&D Tax Credit Statistics’ manufacturing conducts 41% of all UK R&D, claims 23% of R&D tax credit and invests in the area more than any other industry. Manufacturers are continuously developing and researching new technologies, processes and equipment that will streamline and enhance the efficiency of operations. The sector’s growing investment in AI, smart factories, robotics and cloud computing is a direct byproduct of this, all set to be impacted by the tax changes.
Further details can be found here: https://manufacturingdigital.com/articles/r-d-tax-credit-changes