R&D normally delivers a cash flow benefit to a brewer.
R&D normally delivers a cash flow benefit to those innovating in the Food Industry.
A common misconception about the additional tax relief available to companies undertaking Research and Development (‘R&D’) activities is that it is only available for companies that are in high tech or scientific industries. However, this couldn’t be further from the truth.
Reacting to ever-changing consumer demands and market pressures requires constant innovation, and companies within the food & drink sector may have been under great pressures to adapt their operations accordingly over recent months.
The cost to the taxpayer of Covid by the end of the next financial year is predicted to be £407 billion, much of which has been funded by debt.
Following our previous blog posts on HMRC’s intention to prevent abuse of the Research and Development (“R&D”) Scheme for SME’s (https://blog.aab.co.uk/rd-tax-relief-preventing-abuse-of-the-sme-scheme) here is a reminder of the upcoming changes to the scheme.