In his 2021 autumn statement, the Chancellor announced that companies claiming R&D tax relief would now be able to claim relief against all costs associated with data and cloud computing. This was further extended in the spring statement, with the inclusion of mathematics as an eligible activity.
Companies can now claim relief against the costs associated with using third party resources and services in the acquisition, analysis and storage of big data, making greater use of digital twinning, simulation and prototyping.
Businesses can also now claim relief for pushing the boundaries of pure maths – for example in mathematical modelling projects which help to better understand vibration patterns in electrical equipment to effect better dampening strategies or to improve the performance of optical identification systems on inspections lines.
The inclusion of such costs to the R&D tax relief schemes is not only a direct boost for a wide range of IT related sectors (such as Artificial Intelligence, quantum computing or AR/VR) but will also bring huge benefits to the “modernising manufacturing” agenda, which relies heavily on the use of data throughout R&D, design and innovation, including digitalisation and automation projects.
Furthermore, the ability to claim relief against costs for the use of third-party facilities and services makes these resources more accessible for smaller companies that may previously have been excluded due to high costs of entry, levelling the playing field in the digitalisation of R&D.
Make UK members who have questions relating to R&D tax relief or wish to discuss the implications of recent changes to the R&D tax relief scheme, can contact Sandy Findlay on 07807 739033 or email [email protected]
ABGI is a leading international tax incentive and innovation management advisor. They already help many Make UK members accelerate their innovation activity by identifying and securing appropriate funding in the form of grants, tax incentives or commercial funding.
With 30+ years heritage and 200 experts, ABGI manage £1.6billion of innovation incentives annually across 19 countries, for some of the world's best-known brands.