At this time when many companies are looking for some additional cash, far more have been looking at R&D tax relief and being more open to consider whether their activities qualify as innovative enough to justify a claim.
What is ATED?
The Treasury and Chancellor previously suggested that more effective tax changes would be introduced after undertaking consultation and seeking comment on the output from such consultation exercises. Therefore, instead of this being lost in the Budget Announcement a separate date, Tax Day, was set for the consultation announcements to be delivered – 23 March 21.
Despite the global mobility issues Covid-19 has caused during 2020, UK companies have still been presented with opportunities to work overseas. In particular, we have seen UK clients working in Norway, Denmark, Germany, UAE, Saudi and Taiwan, just to name a few. When any work is undertaken in an overseas territory, it is important to remember that UK companies must remain compliant with the local tax laws and any resultant filing obligations, in addition to their UK tax obligations. Additionally, it is evident that overseas authorities are actively seeking to ensure that non-resident companies are compliant, paying the required taxes due, and filing the necessary returns by monitoring their days spent in country. Some authorities are more advanced, like Norway who have a dedicated tracking system.
Even with COVID19 overshadowing everything during 2020, Brexit did not exactly creep up on exporters on 1 January 2021. However, with the EU-UK Trade and Cooperation Agreement only being finalised on Christmas Eve, UK businesses had very little time to prepare for the reality of Brexit. It is little wonder, therefore, that we have had all of the headlines in the first few months of 2021 around delays at the ports, rotting food on lorries and empty shelves in stores. Even the UK’s beloved “Percy Pig” was threatened by EU “red tape”!