A Study for Qualitative Research into Businesses: Research and Development
Abstract: HM Revenue & Customs, (HMRC) in conjunction with the Department for Business, Innovation and & Skills, (BIS) commissioned Data build Research and Solutions to conduct qualitative research to investigate businesses‟ processes for making decisions about research and development (R&D) and to identify the effects of two state sponsored research incentives: R&D tax credits and grants for R&D, on their behavior To explore these research questions, qualitative interviews were conducted with managing directors, finance directors and the directors responsible for R&D in companies which undertake technology or science-based R&D in the UK.
Applying for R&D tax credits is seen as a matter of accounting routine and there appears to be a disconnect between the R&D and finance functions in many companies. Very often, those engaged in R&D are not personally involved in making the claim since it is handled by others, frequently outside the company. The provision of the required information can be challenging at the start but soon becomes part of a routine. At the end of year, external accountants play a major part in giving advice and processing the claim but do not always provide accurate information. keep reading…
