The Government sought views from R&D tax relief claimants and other stakeholders on the scope of qualifying expenditures for R&D Tax Credits, specifically related to data and cloud computing costs.
MMP recently highlighted the complexity of claiming data and cloud computing within the R&D Tax Relief scheme. The eligibility of these costs is often misunderstood by claimants due to a lack of guidance or expert advice.
To provide more clarity in this area, the government confirmed in Budget 2020 that they would be launching a consultation on data and cloud-computing costs as reported in one of our earlier articles.
David Marshall co-founder of MMP, commented "MMP has taken part in this HMRC consultation process through discussions with industry leaders and seeking client opinion in building our response."
"MMP holds a seat on HMRC's R&D consultative committee and was a member of the working group set up by HMRC to author updated software guidance. We also contributed to the case studies issued by HMRC to clarify the eligibility of software development as a part of an R&D tax claim".
A copy of the consultation response made by MMP can be downloaded here
MMP strongly supports the R&D Tax Relief scheme as a powerful driver in developing and inspiring innovation and believes in helping deserving claimants access this valuable incentive.
This is a risky and complex area. Detailed and expert advice should be sought.
If you have any questions or would like a free consultation with an expert at MMP, don’t hesitate to get in touch or to speak directly and confidentially to a consultant, call us.
Alexis is one of the founding Directors of MMP Tax.
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