back to article UK Budget: Cloud tax relief, compute study in historic cost of living crisis

As the UK's Chancellor of the Exchequer struggles to bring cheer to the nation's greatest cost of living crisis in 50 years, he let slip a few nuggets for the tech industry. Firstly, if an organization qualifies for research and development tax relief, the services which qualify are being expanded to include cloud services and …

  1. Mike 137 Silver badge

    To those that have already...

    " the Treasury continued plans to help businesses with between five and 249 employees invest in software. The Help to Grow (Digital) scheme announced last year [...]"

    This is par for the course. There have been numerous "growth" schemes from government, and all have excluded every business with less than five employees. Consequently, innovative entrepreneurs don't receive any support to get started. What we really need is support for the first steps to help innovators get started towards "five employees". There must be vast numbers of people with really important contributions to make that currently can't get started, and societal progress is retarded as a result..

    1. Arthur the cat Silver badge

      Re: To those that have already...

      Nice theory, but in practice you'd need at least five employees(*) to handle the paperwork the government would need to decide whether or not they were going to give you support (if the scheme hadn't been cut short before that point anyway). The best advice for most very early phase entrepreneurs is avoid as much government bureaucracy as possible. I speak from experience, both personal and of friends.

      (*) Yes, I'm probably exaggerating, but not much.

  2. Howard Sway Silver badge

    all cloud computing costs associated with R&D, including storage, will qualify for relief

    Why only cloud computing? This is a massive bit of tax engineering that disincentivises in-house data processing and storage. Was it due to all the lobbying from the Amazon / MS / Google lot? Sounds like Sunak got buttered up well by the big execs when touring Silicon Valley doing his "I'm really a modern tech bro too" act and it's going to pay off handsomely for those who already rule the roost (as seems to be his general philosophy about money and who deserves it).

    And the activity is called "computing" not "compute", and you don't sound all trendy and with-it with that loathsome bit of attempted jargony language mangling.

    1. Anonymous Coward
      Anonymous Coward

      Re: all cloud computing costs associated with R&D, including storage, will qualify for relief

      Because there are already R&D reliefs on direct software licensing and employment. There aren't direct reliefs on capital expenditure under the same scheme, but these qualify under the separate r&d capital allowance scheme.

    2. wolfetone Silver badge

      Re: all cloud computing costs associated with R&D, including storage, will qualify for relief

      "And the activity is called "computing" not "compute", and you don't sound all trendy and with-it with that loathsome bit of attempted jargony language mangling."

      To be fair to that dickhead Rishi, he didn't get the term "compute" from Silicon Valley.

      He got it from Red Dwarf, where Rimmer asked Queeg "What does compute mean?" when he's given a feck load of stuff to put in to his Commodore 64.

  3. Jellied Eel Silver badge

    Better budgies

    I thought the budget was great. Especially when government announced that henceforth, MP and quangocrat pay will be performance related. Simple, yet bold move to flip pay rises from being RPI+ to -RPI, reflecting that inflation is a cost to all consumers. I think this should focus politicians on reducing cost of living, not rewarding themselves for creating a cost of living crisis.

    Alternatively, we get 5p off a litre of gas. Yey. We're rich. Just ignore that supplies of diesel are running out across Europe. Or despite cloudybollocks and compute being hip & trendy, datacentres need cheap, reliable power. Which we don't have, thanks to politicians dumping crap like the Climate Change Act on us.

  4. Anonymous Coward
    Anonymous Coward

    How/who defines "R&D" ?

    Just that really ?

    My companies main thrust of R&D is into how to make more money. Does that count ?

  5. jdiebdhidbsusbvwbsidnsoskebid Bronze badge

    Just accounting software?

    Looks like the software that SMEs can get discounts on is just admin and accounting software. Shame it doesn't apply to technical software to help these SMEsdo technical work. I wonder if this is a ploy by the treasury to ensure that these companies correctly pay their taxes, neglecting the tools they need to actually do science.

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