IR35 and R&D Tax Credits update

Only a week ago, I published information regarding proposed changes to both R&D Tax Credits and IR35.  As an example of how quickly things are changing in the current climate, my blogs are already out of date.

IR35

The Government announced on Tuesday evening (17 March) that the changes outlined in my earlier blog on this site and due to take effect from 6 April 2020 will now be delayed until next April.

This delay will be welcomed by contractors and subcontractors who were due to be affected by the changes in less than three weeks’ time in the current challenging business environment. 

R&D Tax Credits

Similarly and equally welcome is that the proposed changes limiting any R&D Tax Credits refund to three times the amount of PAYE tax and NIC paid over by the company claiming the refund has also been delayed by one year.

But remember:

Both these changes are welcome and will give a chance for businesses to concentrate on the challenges of COVID-19 in priority to a tax change. However, they are still planned to take place next year and will radically alter the tax landscape when they do.  We have an extra year to plan for them and should do so in plenty of time.

If you have any questions, please get in touch; andrew.carter@continumm-ltd.co.uk