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Orchard Growth alerts growth businesses to predicted change in R&D tax credit allowance, following tightening up at HMRC

Guest post by: Ash Mehta

Article Overview: Orchard Growth, providers of flexible finance directors to growth companies, has warned companies in its care to ensure that they are prepared for a predicted change to the tax relief allowance provided for research and development. As many of the growth companies served by Orchard Growth’s part-time FDs are involved in technology, any change to the R&D tax relief boundaries could have a significant impact.

Orchard Growth alerts growth businesses to predicted change in R&D tax credit allowance, following tightening up at HMRC



Orchard Growth, providers of flexible finance directors to growth companies, has warned companies in its care to ensure that they are prepared for a predicted change to the tax relief allowance provided for research and development. As many of the growth companies served by Orchard Growth's part-time FDs are involved in technology, any change to the R&D tax relief boundaries could have a significant impact.

Ash Mehta, Chief Executive of Orchard Growth, commented; "We've certainly noticed a change in the responsiveness to tax claims over the last two years. HMRC is much faster in its response, and the prediction by Grant Thornton of a change to the R&D tax relief would come as no surprise. Following the impact of the credit crunch on the public purse, I think there will be a great deal of scrutiny of all tax allowance policies, especially those that involve less tax going to the government."

When asked how growth businesses currently benefitting extensively from the R&D tax allowance should prepare, Ash replied "No changes have been officially made yet, but my advice is still the same. All businesses need to work closely with their finance director to ensure that the company's financial structures are flexible enough to respond to any changes, and that the business is working as efficiently as possible. Many of our clients have improved their business during the recession, and are better placed for the up-turn as a result. If an R&D intensive company is efficient, well-structured and managed by a capable, experienced financial director, it should be able to cope with any change to tax allowances."

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Article Tags: credit crunch, fds, finance director, finance directors, financial director, financial structures, flexible finance, grant thornton, growth businesses, intensive company, mehta, orchard, public purse, recession, responsiveness, scrutiny, significant impact, tax allowance, tax allowances, tax relief



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