Page 5 - HMRC changes APR23

02. R&D tax credits to include data and cloud computing costs
levelling the playing field?
Manufacturers using digital twinning to aid digital simulation
& prototyping projects, or those using big data to analyse and resolve issues (aerodynamics, performance of materials under stress, etc) will be pleased to hear that companies claiming R&D tax relief will be able to claim relief against all costs associated with data, cloud computing and mathematics.
Companies will be able to 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 will also be able to 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 will 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.
www.visiativ.co.uk | SHARING IS GROWING
5